Baltic Horizon Fund's SDR Delisting Plans
Northern Horizon Capital AS has announced its decision to terminate the Swedish Depositary Receipts (SDRs) program of Baltic Horizon Fund and delist the SDRs from Nasdaq Stockholm. This significant move is expected to occur in the near future, with plans to finalize the process as early as possible.
Reasons for the Delisting Announced
The rationale behind this decision stems from the notable decline in the number of SDRs held by investors and actively traded on Nasdaq Stockholm. As of January 29, 2025, only 7,902,390 SDRs remained, representing about 5.5% of the total outstanding units. In contrast, there were 24,077,945 SDRs as of December 31, 2023, making up roughly 25% of total units.
Impact on Investors and Liquidity
Insights from the fund manager reveal that many investors have transitioned their SDRs to Estonian fund units, allowing them to trade on Nasdaq Tallinn. This shift has contributed to a significant decrease in the liquidity of SDRs on Nasdaq Stockholm, where only 4.8% of all trades involving Baltic Horizon Fund units were conducted throughout 2024. In fact, more than 15 million units of the fund were traded across various stock exchanges during that period.
Strategic Disposition of SDR Program
Given these developments, the fund manager deems the discontinuation of the SDR program to be a reasonable decision that aligns with the collective interests of investors. This initiative is also expected to lower the fund's cost base, thereby potentially enhancing its overall efficiency.
Next Steps for SDR Holders
Northern Horizon Capital AS is committed to working with Swedish partners and advisors to finalize a detailed plan that will allow SDR holders to convert their SDRs into fund units listed in Nasdaq CSD, or to have adequate time to divest their holdings. Further information regarding this process and a comprehensive timeline will be communicated to investors in the near future.
No Impact on Tallinn Listed Units
The proposed plan will not affect those investors who hold their investments in Baltic Horizon Fund units listed on Nasdaq Tallinn. They can continue to manage their investments without interruption or concern.
Contact Information for Inquiries
For additional information, please contact:
Tarmo Karotam
Baltic Horizon Fund manager
E-mail tarmo.karotam@nh-cap.com
Visit www.baltichorizon.com
The Fund operates as a registered contractual public closed-end real estate fund, managed by Northern Horizon Capital AS, which holds an Alternative Investment Fund Manager license.
Frequently Asked Questions
What is the purpose of the SDR program termination?
The termination is aimed at consolidating operations and reducing costs as the trading activity for SDRs has significantly declined.
How many SDRs are currently held by investors?
As of January 29, 2025, there are approximately 7.9 million SDRs held by investors, a significant drop from the previous figures.
Does this affect investors in Nasdaq Tallinn?
No, investors who hold Baltic Horizon Fund units listed on Nasdaq Tallinn will not be impacted by this decision.
When will the delisting take effect?
The delisting is expected to occur no earlier than August 2025, following a detailed communication to investors.
Who should I contact for more details regarding this change?
Investors seeking more information can reach out to Tarmo Karotam via email or through the official website of Baltic Horizon Fund.
