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(Alliance News) - CATCo Reinsurance Opportunities Fund Ltd is to look to compulsorily redeem existing ordinary and C shares, it said Tuesday.
CATCo's board does not currently have the authority to do this, so it will be convening a meeting of shareholders as soon as possible to vote on the matter.
In February last year, the company decided to start a run-off of the company's portfolios instead of a restructuring. Most shareholders, it said, wanted to convert shares into redemption shares.
Since then, Master Fund shares have all been redeemed via a reverse tender and share buybacks. As of December, the ordinary share portfolio was worth USD5.1 million and the C share portfolio USD19.1 million.
"The board has, having consulted with its advisers and major shareholders, concluded the most appropriate method by which to return the further net proceeds of the company's exercise of the special redemption right is to conduct compulsory redemptions at the prevailing net asset value per ordinary or C shares, as the case may be in relation to the company's ordinary and C shares," said CATCo.
Shares closed 13% lower on Tuesday in London at a price of USD0.18 each.
By George Collard; georgecollard@alliancenews.com
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