Ashmore Regulatory News (ASHM)

29 Oct 2007 07:01

Ashmore Group PLC29 October 2007 29 October 2007 PRESS RELEASE ASHMORE ANNOUNCES ITS INTENTION TO FLOAT A NEW INVESTMENT COMPANY ON THE LONDON STOCK EXCHANGE This announcement is an advertisement and not a prospectus and investors shouldnot subscribe for or purchase any shares referred to in this announcement excepton the basis of information in the prospectus to be published by the Company indue course in connection with the admission of the ordinary shares in thecapital of the Company to the main market of the London Stock Exchange plc (the"Prospectus"). Copies of the Prospectus will, following publication, beavailable from the Company's registered office. Ashmore Group plc ('Ashmore'), a leading emerging market investment manager,today announces its intention to launch a newly incorporated publicly listedclosed-ended investment company, Ashmore Global Opportunities Limited (the 'Company'), whose shares will be listed on the Main Market of the London StockExchange ('LSE'). The Company intends to raise €500 million through the offer(the 'Offer'). The Company will invest across Ashmore's investment themes with aprincipal focus on Special Situations. Offer Highlights Direct access to a leading specialist in emerging markets • Ashmore is a leading specialist value-oriented emerging markets assetmanager with US$33.1 billion of assets under management(1) • The Company will have access to the full range of Ashmore's currentand future investment themes Rapid deployment of proceeds • The Offer proceeds(2) are to be invested promptly following closing ofthe Offer in Ashmore-managed funds across its investment themes Diversified exposure to emerging market investments with a principal focus onSpecial Situations • Shareholders will be offered exposure to investments in emergingmarkets across Ashmore's investment themes, currently Special Situations, DollarDebt, Local Currency, Equity and Corporate High Yield • To deliver its principal focus on Special Situations, the Company willhave guaranteed capacity of up to 25% in all future Ashmore Special Situationsfocussed funds including the ability to make a commitment upon closing of theOffer of up to 25% or US$400 million in GSSF4, Ashmore's most recent SpecialSituations fund, together with the ability to make direct Special Situationsinvestments • Offer proceeds(3) not initially invested in GSSF4 will be invested inAMSF, Ashmore's multi-strategy fund, and other Ashmore managed funds Strong long-term investment performance track record • Ashmore's highly experienced investment team has a track record ofdelivering strong investment performance across its investment themes • Since its launch in March 2003, AMSF has achieved a net annualisedreturn in excess of 18% Appealing structure and investor protections • None of the costs in relation to the Offer will be borne by theCompany • No double charging of investment management fees(4) • The Company's Board has a majority of independent directors • Board authority to buy back up to 14.99% of shares per annum The Company The Company is a Guernsey incorporated closed-ended investment company, whoseinvestment manager will be Ashmore Investment Management Limited (the 'Investment Manager'). It is intended that the Company will offer three classesof voting ordinary shares, trading in US Dollar, Euro, and Sterling,respectively. The shares will be admitted to listing (under Chapter 14 of theUK Listing Authority's Listing Rules) on the Official List and to trading on theLSE's Main Market. Ashmore has selected Goldman Sachs International and JPMorgan Cazenove Limitedas joint global coordinators and joint bookrunners for the Offer and GoldmanSachs International, JPMorgan Cazenove Limited and JPMorgan Securities Limitedas joint lead managers for the Offer. - Ends - For further information please contact: PenroseGay Collins +44 (0)20 7786 4882Julie Allison +44 (0)20 7786 4872 AshmoreJerome Booth +44 (0)20 7557 4100Tom Shippey +44 (0)20 7557 4100 Notes to editors Ashmore Group Ashmore is a specialist, active, value-oriented emerging markets asset manager.It was originally formed in 1992, within the emerging markets business of ANZ,by the current Chief Executive Officer of the Investment Manager, Mark Coombsand its senior executives who sought and undertook a management buy-out of thebusiness which was completed in February 1999. Subsequently, Ashmore was listedon the London Stock Exchange in October 2006 and is majority owned by itsemployees. Ashmore currently manages US$33.1 billion of assets under management(5) andfocuses on five emerging markets investment themes - Special Situations, DollarDebt, Local Currency, Equity and Corporate High Yield - and has a record ofdelivering strong long-term investment performance. Across these diversifiedinvestment themes, members of the Ashmore Group managed 21 Ashmore funds(including open-ended and closed-ended funds), 14 segregated accounts, 9 whitelabel funds (including 2 structured product vehicles)(6). Ashmore is headquartered in London, with offices in New York and Singapore andoperations in Turkey and India, and employs 77 staff, including 27 investmentprofessionals and an 8 person legal team(7). The current Ashmore funds have over 1,800 investors across its investmentthemes, with a predominantly institutional investor base which includes pensionplans, government agencies, financial institutions and corporates. Important Information This announcement is not for distribution (directly or indirectly) in, into orfrom the United States, Australia or Japan (or any other jurisdiction where todo the same would constitute a violation of the relevant securities laws of suchjurisdiction). In addition, this announcement does not constitute an offer ofsecurities for sale in or into the United States, Canada or Japan (or any otherjurisdiction where the same would constitute a violation of the relevantsecurities laws of such jurisdiction) This announcement has been issued by Ashmore Group plc ("Ashmore") 20Bedfordbury, London WC2N 4BL and has been approved by Ashmore InvestmentManagement Limited solely for the purposes of section 21 of the FinancialServices and Markets Act 2000. Goldman Sachs International, JPMorgan Cazenove Limited and JPMorgan SecuritiesLimited (the "Banks"), which are authorised and regulated by the FinancialServices Authority, are acting for the Company and no one else in connectionwith the Offer and will not regard any other person as the respective clients ofeach of the Banks in relation to the Offer and will not be responsible to anyoneother than the Company for providing the protections afforded to the respectiveclients of each of the Banks nor for providing advice in relation to the Offeror any transaction of arrangement referred to in this announcement or theProspectus. This announcement constitutes an advertisement within the meaning of theProspectus Rules of the Financial Services Authority (the "FSA") and is not aprospectus. This announcement does not constitute or form part of any offer ofsecurities, or constitute a solicitation of any offer to purchase or subscribefor securities. Investors should not subscribe for shares in the Company excepton the basis of information contained in the Prospectus which it is intendedwill be approved by the FSA in accordance with the Prospectus Rules made undersection 73A of the Financial Services and Markets Act 2000 in connection withthe Offer and any supplement to that Prospectus. The Prospectus will containdetailed information about the Company and its management as well as financialstatements and other data. After its approval by the FSA and publication, copiesof the Prospectus will be available from the offices of Ashmore at 20Bedfordbury, London WC2N 4BL. No representation or warranty, express or implied, is made or given by or onbehalf of Ashmore, the Company, Ashmore Investment Management Limited, the Banksor any of their respective affiliates or any of such person's directors,officers or employees or any other person as to the accuracy, completeness orfairness of the information or opinions contained in this announcement and noresponsibility or liability is accepted by such persons for any such informationor opinions. The securities have not been, and will not be, registered under the U.S.Securities Act of 1933, as amended (the "Securities Act"), and may not beoffered or sold in the United States, or to, or for the account or benefit of,US persons (as such term is defined in Regulation S under the Securities Act)absent registration or an exemption from the registration requirements of theSecurities Act. The issuer of the securities mentioned herein does not intendto register any portion of the Offer in the United States or to conduct a publicoffering of securities in the United States. The issuer of the securitiesmentioned herein has not been and will not be registered under the US InvestmentCompany Act of 1940, as amended, and investors will not be entitled to thebenefits of that Act. This announcement does not constitute a recommendation concerning the Offer. Thevalue of shares can go down as well as up. Past performance is not a guide tofuture performance. Potential investors should consult a professional adviser asto the suitability of any offering for the individual concerned. This announcement includes forward-looking statements which are or may be deemedto be "forward-looking statements" under United States securities laws. Theseforward-looking statements can be identified by the use of forward-lookingterminology, including the terms "targets", "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case,their negative or other variations or comparable terminology. By their nature,forward-looking statements involve risks and uncertainties because they relateto events and depend on circumstances that may or may not occur in the future.Forward-looking statements are not guarantees of future performance. TheCompany's actual investment performance, results of operations, financialcondition, liquidity, dividend policy and the development of financingstrategies may differ materially from the impression created by anyforward-looking statements contained in this announcement. In addition, even ifthe investment performance, results of operations, financial condition,liquidity, dividend policy and the development of financing strategies areconsistent with the forward-looking statements contained in this announcement,those results or developments may not be indicative of results or developmentsin subsequent periods. Important factors that may cause these differencesinclude, but are not limited to, changes in economic conditions generally;changes in interests rates and currency fluctuations, as well as the success ofthe Company's hedging strategies in relation to such changes and fluctuations(if such strategies are in fact used); impairments in the value of the Company'sinvestments; legislative/regulatory changes; changes in taxation regimes; theCompany's ability to invest cash on its balance sheet and the proceeds of theOffer in suitable investments on a timely basis; the availability and cost ofcapital for future investments and the availability of suitable financing. Norepresentation or warranty is given by the Company, Ashmore or AshmoreInvestment Management Limited as to the performance or profitability of theCompany or any part of it or the success of any investment strategy used by theCompany. In connection with the Offer, Goldman Sachs International, as stabilisationmanager, may, for a period of 30 days after the results of the Offer areannounced, over-allot or effect transactions intended to enable it to satisfyany over-allocations of shares in the Company, or which stabilise, maintain,support, or otherwise affect, the market price of the shares of the Company at ahigher level than that which might otherwise prevail in the open market. -------------------------- (1) As at 30 September 2007. (2) Less any amount retained for working capital requirements. (3) Less any amount retained for working capital requirements. (4) Other than for investments in money market and liquidity funds for thepurposes of efficient cash management. (5) As at 30 September 2007 (6) As at 30 September 2007 (7) As at 30 September 2007 This information is provided by RNS The company news service from the London Stock Exchange