Last checked at 
10 Nov 2020 14:00
10 November 2020
Macau Property Opportunities Fund Limited
Notice of Annual General Meeting and Reduction in Operating Costs
Macau Property Opportunities Fund Limited (the "Company") announces that the Notice of Annual General Meeting ("AGM") will be posted to shareholders today. The AGM will take place on 30 November 2020 at 9.00 a.m. (GMT) 5.00 p.m. (HKT).
An electronic copy of the AGM and Chairman's Letter is available at the Company's website at https://mpofund.com/investors/publications/shareholder-documents/.
In addition to the ordinary business being proposed at the AGM, a resolution will be put to shareholders to continue the life of the Company (the "Continuation Resolution") in accordance with the obligation set out in the circular dated 8 June 2018. Additionally, the Board are proposing some minor amendments to the Company's Articles of Incorporation, in order to enable greater flexibility for proposing subsequent Continuation Resolutions, and to facilitate Director participation at Board Meetings, where current travel restrictions and guidelines prevent physical attendance in Guernsey.
The Board recommends that shareholders vote in favour of the Continuation Resolution in order to allow the opportunity to dispose of the remaining Company assets in an orderly way. It is likely that returns from sales of properties would be significantly lower if the Company was forced to sell as a result of discontinuation. It is the Board's view that it is therefore commercially sensible for the Company to continue. The Board also recommend that shareholders vote in favour of the resolution to amend the Company's Articles of Incorporation, as such changes would aid the Board of Directors in the timely delivery of the Company's divestment strategy.
In the Chairman's Statement in the annual financial statements published on 8 October 2020, it was stated that the Company had benefitted from a combination of lower management and administration fees, periods of favourable exchange rates and borrowing costs. The Board and the Manager are in discussions to potentially alter the fee arrangements previously agreed. This is to reflect the continued need for investment and management functions for longer than had been expected, as a direct consequence of the delays to the divestment programme brought about by the impact of the COVID 19 pandemic on the Macau economy and the sale of the remaining assets. A separate announcement will be issued on conclusion of those discussions.
The Audit Committee is carrying out an audit tender process which was referred to in the Company's Annual Report in accordance with the guidelines and practice set out in the AIC code which the Company follows. The Board expects that the tender and evaluation process will conclude shortly, at which point it will be in a position to confirm the appointment of the Company's statutory auditor for the 2020/2021 financial period on the recommendation of the Audit Committee.
The uncertainty that the COVID-19 outbreak produced during the first half of 2020 has affected all aspects of life and business sentiment, and wider world markets will remain challenged. It appears that Macau may be past the worst, however, the recovery process will take time and we need both confidence in the Macau economy and further easing of travel restrictions to translate into improved sentiment to support the divestment of assets. In addition, external factors including capital controls within mainland China, the direction of US/China trade tensions and the wider effects of COVID will influence the pace of a recovery in the luxury property sector in Macau.
Notes
A copy of the Notice and the Form of Proxy has also been filed at the National Storage Mechanism web-site at www.morningstar.co.uk/uk/NSM.
About Macau Property Opportunities Fund
Premium listed on the London Stock Exchange, Macau Property Opportunities Fund Limited is a closed-end investment company registered in Guernsey and is the only quoted property fund dedicated to investing in Macau, the world's largest gaming market and the only city in China where gaming is legalised.
Launched in 2006, the Company targets strategic property investment and development opportunities in Macau. Its current portfolio comprises prime residential property assets.
The Company is managed by Sniper Capital Limited, an Asia based property investment manager with an established track record in fund management and investment advisory.
Stock Code
London Stock Exchange: MPO
LEI
213800NOAO11OWIMLR72
For further information:
Investor Relations
Sniper Capital Limited
Tel: +65 6222 1440
info@snipercapital.com
www.snipercapital.com
Corporate Broker
Liberum Capital
Gillian Martin / Owen Matthews
Tel: +44 20 3100 2000
Company Secretary & Administrator
Ocorian Administration (Guernsey) Limited
Kevin Smith
Tel: +44 14 8174 2742