Overview of Share Redemption by CATCo Reinsurance
Recently, CATCo Reinsurance Opportunities Fund Limited completed a significant event affecting its shareholders: a partial compulsory redemption of shares. This decision involved redeeming 109,246 Ordinary Shares valued at $41.6197 each and 74,846 C Shares priced at $221.6594 each.
Details of the Redemption
The announcement regarding the share redemption was originally made on March 13, 2020. Following updated information, this process has resulted in only 4,858 Ordinary Shares and 3,478 C Shares remaining in circulation after the redemption.
Redemption Ratios Explained
The company implemented specific redemption ratios: 0.958099628 for Ordinary Shares and 0.956143710 for C Shares. To break it down further, a holder of 1,000 Ordinary Shares had 958 shares redeemed, yielding a total cash amount of $39,871.67. Likewise, for a holder of 1,000 C Shares, 956 shares were redeemed, resulting in a cash return of $211,906.38. In total, this redemption accounted for approximately 95.73% of the issued share capital.
Implications for Shareholders
As part of its transparency compliance, CATCo Reinsurance updated its issued share capital following the redemption, disclosing the new figures to the Financial Conduct Authority (FCA). As mentioned, the current total voting rights now stands at 8,336, which shareholders can use for calculations related to notifying any interests in the Company as per the FCA's rules.
Upcoming Distribution of Proceeds
The financial proceeds from this redemption will be distributed to shareholders based on their shareholding. Holders of Ordinary Shares and C Shares in uncertificated form will receive payments via CREST on a specified date, while those with certificated shares will receive a cheque shortly after. The effective date for the new ISIN numbers associated with Ordinary Shares and C Shares is today, with the respective numbers being BMG1961Q3325 and BMG1961Q3408.
Management and Future Directions
This redemption activity forms part of CATCo's strategic management of its capital structure, as detailed previously in its Circular to Shareholders. Those seeking more insights into the redemption process or the Company’s future strategies can consult representatives from CATCo Investment Management Ltd. or Numis Securities Limited.
Frequently Asked Questions
What is a share redemption?
A share redemption occurs when a company buys back its shares from shareholders, effectively reducing the total number of shares in circulation.
How does this impact existing shareholders?
Existing shareholders may experience an increase in their ownership percentage, given that the total number of shares has decreased.
When will the proceeds from the redemption be paid?
The proceeds are scheduled to be disbursed through CREST and by cheque on the designated dates mentioned.
What is the significance of the new ISIN numbers?
The new ISIN numbers identify the updated shares post-redemption, and shareholders should use these for any future transactions.
Where can I find more information on CATCo’s activities?
Shareholders can contact CATCo Investment Management Ltd. or Numis Securities Limited for the latest updates and detailed information regarding the company’s activities.
