Asset Value Investors (AVI), manager of the £1.2bn AVI Global Trust (AGT) and three other shareholders in Third Point Investors Limited (TPIL) collectively owning over 17 per cent. of its ordinary shares and over 10 per cent. of the voting rights have today requisitioned the TPIL Board to convene an extraordinary general meeting of TPIL to consider and if thought fit pass a resolution to change its investment policy. The resolution is aimed at fixing TPIL’s persistent and entrenched trading discount to NAV.
Tom Treanor, Executive Director, Asset Value Investors, comments: “The proposed new investment policy would see TPIL use its existing contractual authority to redeem shares in the Master Fund and use the proceeds to fund redemptions of Ordinary Shares at NAV less costs on a quarterly basis. We recommend that simultaneously, Shareholders (whether existing Shareholders or not) should be allowed to submit subscription requests at the same price at which redemptions are made.
“The proposed new investment policy would place no obligation on any Shareholder to redeem any of its investment in TPIL – simply an ability to do so, at a price close to NAV. Nor should it have any material impact on NAV returns for those Shareholders who wish to remain invested. Indeed, these are liquidity terms that Third Point has had no problem honouring for other investors since the firm’s inception.”
A letter providing some background to the action AVI is taking can be found by clicking on the following link:
Notes to editors
About Asset Value Investors (AVI)
AVI was established in 1985 to take over the management of one of the oldest listed investment companies in London, now called AVI Global Trust. Our distinctive approach of investing in family-controlled companies, closed-end funds (CEFs) and asset backed situations is still a unique combination 35 years later. Constructive engagement with investee Boards to improve governance and reduce discounts is central to our investments in CEFs.
Asset Value Investors (AVI) has a long history of engagement with investee companies in Europe and Asia. The team often interacts with the Board and management to unlock shareholder value and promote high standards of corporate governance.