Smo Gold Regulatory News (BARS)

21 Nov 2011 12:10

BlackRock Absolute Return Strategies Limited (the "Company")

21 November 2011

Redemption of Shares

In accordance with the powers granted to the Board at the Company's extraordinary general meeting in August, the Board announces that it intends to implement the first distribution to shareholders of the cash proceeds from the realisation of the Company's investments in mid-February 2012 by way of a compulsory share redemption (the "First Redemption").

The cash distribution to shareholders will be based on the estimated monthly NAV of the Company, and the cash available, as at 31 December 2011. The board currently expects the First Redemption to comprise at least 50% of the Company's Shares conditional on the receipt of the scheduled redemption proceeds from underlying assets. The Company anticipates publishing a further announcement in early January (the "First Redemption Announcement") containing details of the estimated monthly NAV as at 31 December 2011, together with the quantum to be distributed to shareholders pursuant to, and details of the mechanism to effect, the First Redemption.

Conversion between share classes

The Board has resolved that the Company's share conversion facility will be suspended with immediate effect. It is envisaged that the Euro and US Dollar share classes will be merged into the Sterling class shortly after the First Redemption.

Currency Hedging

The Board anticipates that as a result of the First Redemption it will become inefficient to maintain the currency hedging programme, taking into account inter alia the possible margin call requirements in connection with currency hedging activities and the costs of maintaining the programme. Further, the cash required to be held by the Company to cover possible margin calls would also limit the cash available for distribution pursuant to the First Redemption.

Accordingly it is currently envisaged that the Board will terminate the Company's currency hedging programme shortly after the First Redemption Announcement. Consequently, from such time holders of Shares denominated in currencies other than US Dollars will be exposed to exchange rate fluctuations between such currencies and the US Dollar.

Enquiries:

Will Rogers - 020 7397 1920Tommy O'Sullivan - 020 7397 1922Chris Lunn -020 7397 1912Cenkos Securities plc

Jonathan Ruck Keene / Kerry Higgins (Company Secretary) - 020 7743 3000 BlackRock Investment Management (UK) Limited