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(Correcting the proposed change to the management fee percentage.)
LONDON (Alliance News) - BH Macro Ltd on Tuesday proposed a tender offer to buy back shares and, if more than two thirds of shareholders accept, will seek to liquidate the company.
If the tender offer proceeds rather than a full liquidation, the company will seek to change its structure and management agreement with the fund's manager.
BH Macro said it has launched a tender offer for up to 100% of each class of its issued share capital at a price equivalent to 96% of its net asset value at the end of February 2017. The plans will be put to shareholders at a meeting in January, the exact date of which has not yet been set.
However, BH Macro said that if valid acceptances are received for more than 67% of the shares in issue, the tender offer will not proceed and instead proposals will be put forward to liquidate the entire company.
BH Macro said the changes, agreed with its manager Brevan Howard Capital Management LP, will allow shareholders who want to realise their investment in the company to do so, while allowing shareholders who remain invested better terms.
If it does proceed, BH Macro said that if any of its share classes have a net asset value below USD25.0 million, the remaining shares in that class will be converted into shares of the largest class following the tender offer.
If the offer does proceed, shareholders still invested in the company will see the management fee payable to Brevan Howard will be reduced to 0.5% of NAV from 2.0% currently.
Shares in BH Macro were up 5.7% to 2,075.25 pence on the news.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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