Third Point Offshore Corporate Update

 
TIDMTPOG TIDMTPOU 
 
Third Point Offshore Investors Limited (the "Company") 
 (a closed-ended investment company incorporated with limited liability under 
                                  the laws of 
                    Guernsey with registered number 47161) 
 
                           LEI: 549300WXTCG65AQ7V644 
 
                               Corporate Update 
 
                                  2 May 2018 
 
Third Point Offshore Investors Limited - Corporate Update 
 
2 May 2018 
 
The Board of Third Point Offshore Investors Limited ("TPOIL" or the "Company") 
is pleased to announce additional proposed corporate changes following the 
Corporate Update released on 1 March 2018.  TPOIL is a closed-end, 
London-listed feeder into Third Point Offshore Fund, Ltd. (the "Master Fund"), 
the flagship hedge fund managed by Daniel S. Loeb's Third Point LLC (the 
"Investment Manager"). 
 
Transfer to Premium Listing 
 
The Board has initiated the process to pursue amendments to the Company's 
voting rights structure that are necessary to permit the transfer from the 
standard listing segment of the Official List to the premium listing segment of 
the Official List ("Premium Listing") and potential inclusion in the FTSE UK 
Index Series.  In connection with the proposed transfer to a Premium Listing, 
the Company also plans to propose the conversion of its outstanding Sterling 
class of shares into USD shares, but will maintain a Sterling quote alongside 
the USD quote. 
 
Repurchase Policy 
 
The Board is focused on ensuring an alignment of the Company's capital 
allocation policy with the Company's investment style, while taking into 
account shareholder views of best practices.  Under its historical "buy-back" 
policy, the Company did not repurchase its shares directly.  Instead, the 
Master Fund began purchasing TPOIL shares in December 2007 and has since 
purchased 12% of outstanding shares in aggregate, all of which continue to be 
held by the Master Fund for the benefit of the Company.  This approach has 
historically provided TPOIL shareholders with a levered return stream and has 
resulted in a substantial increase to TPOIL's NAV.  While this method has been 
beneficial to shareholders, it is clear to the Board that a more traditional 
share repurchase and cancellation by the Company is the preferred method of 
discount management and the Board has decided to adopt this practice moving 
forward. 
 
In addition, after consultation with the Investment Advisor, the Board has 
approved the repurchase and cancellation of 5% of the outstanding shares in 
aggregate.  The shares to be cancelled are currently held by the Master Fund. 
For technical reasons, it is proposed the cancellation will occur as soon as 
practicable after the conversion of the outstanding Sterling class of shares 
into USD shares.  The result will be a reduction of TPOIL shares outstanding by 
5% and a concurrent adjustment to the Net Asset Value ("NAV") of all 
outstanding TPOIL shares.  The Board intends, dependent on the Master Fund's 
performance, to purchase and cancel the remaining TPOIL shares held by the 
Master Fund in 2019 or, if necessary, thereafter.  The Master Fund has 
committed not to sell any shares it continues to hold while awaiting 
cancellation unless the share price is at or above the NAV.  The Board will 
separately continue to monitor the Company's rating following the proposed 
Premium Listing and may, at its discretion, engage opportunistically in future 
share repurchases by causing the Company to purchase such shares in the open 
market and cancel them upon such purchase. 
 
This new approach to share purchases and cancellations will replace the 
previously held dividend policy.  The dividend policy was in place from 2012 
through 2018 and resulted in total dividend payments of $194 million.  Such 
dividends were funded by redemptions from the Master Fund. The planned 
repurchase and cancellation of Master Fund-held shares will result in an 
additional approximately $100 million reduction to NAV.  Upon completion, the 
Company will have reduced NAV through dividends and repurchases by 
approximately $300 million over the life of TPOIL. 
 
For further information, please visit the Company's website ( 
www.thirdpointoffshore.com) which was developed and is maintained to provide 
information and transparency to current and prospective investors. 
 
 
 
END 
 

(END) Dow Jones Newswires

May 02, 2018 02:00 ET (06:00 GMT)