Last checked at 4 Nov 2008 07:00
4 November 2008
Prodesse Investment Limited
Notice of Extraordinary General Meeting:
Prodesse has received a requisition from Vidacos Nominees Limited on behalf of Polygon Global Opportunities Master Fund requiring the Board to convene an EGM to consider resolutions (a) to remove and replace a majority of the Company's directors and (b) requesting the Board to consider changing the investment policy of the Company so that the Company's existing portfolio of investments would be realised in an immediate, but orderly, fashion and cash returned to shareholders.
The Directors of Prodesse are opposed to both of these proposals. The Board believes that in the current market environment it is inappropriate for shareholders to consider a realisation of the portfolio, as to proceed with this action at the present time would likely result in an unfavourable ultimate value for the Company's investments. As demonstrated by the Company's NAV as of 31 October, released earlier today, even though its assets are obligations explicitly supported by the US Treasury, they have not been immune to the effects of global financial instability and lack of liquidity in the financial markets. The Investment Manager has therefore advised the Board that selling sizeable positions in current market conditions is likely not to result in optimal price execution.
In spite of the current market pressures exerted on the Company's assets, from the beginning of the year to 31st October Prodesse shares have produced a total shareholder return of 11.6%, which is significantly ahead of that produced by the FTSE All Share, which was down 31.3%.
The Board does not believe that a change to its composition would be in the best interests of all of its shareholders.
A circular to shareholders convening the EGM and setting out important information, including information relating to potential costs of winding up the portfolio in an orderly manner, will be sent to shareholders within the timeframe permitted by Guernsey law and UK Listing Regulations and a meeting will, in any event, be held no later than 8th December.
Enquiries
Merrill Lynch: +44 (0)20 7628 1000
Andrew Tusa
Will Smith
Daniel Stewart: +44 (0)20 7776 6550
Simon Starr
Financial Dynamics: +44 (0)20 7269 7114Nick Henderson/Rob Bailhache
BNP Paribas Fund Services (Guernsey) Limited: +44 (0)1481 750850
Sara Radford/Jean McMillan