BlackRock Latin American Investment Trust Plc - Result of Tender offer
PR Newswire
London, May 19
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA AND THE UNITED STATES OR ANY OTHER JURISDICTION WHERE TO DO SO MAY RESULT IN THE CONTRAVENTION OF ANY REGISTRATION OR OTHER LEGAL REQUIREMENT OF SUCH JURISDICTION OR CONTRAVENTION OF ANY LEGAL REQUIREMENT IN THE UK
19 May 2022
BlackRock Latin American Investment Trust plc
(LEI: UK9OG5Q0CYUDFGRX4151)
Results of the Tender Offer
Further to the announcement on 4 January 2022 and the publication of the circular on 5 April 2022 (the "Tender Circular"), BlackRock Latin American Investment Trust plc (the "Company") today announces the results of the tender offer to purchase up to 24.99 per cent. of the Company's Ordinary Shares in issue (excluding treasury shares) (the "Tender Offer").
A total of 22,844,851 Ordinary Shares were validly tendered under the Tender Offer, representing approximately 58.2 per cent. of the Company's issued share capital, excluding shares held in treasury. The maximum number of Ordinary Shares in respect of which tenders will be satisfied, representing 24.99 per cent. of the Ordinary Shares in issue as at the publication date of the Tender Circular (5 April 2022) is 9,810,979 which has resulted in Total Excess Tenders of 13,033,872 Ordinary Shares.
Eligible Shareholders who validly tendered a percentage of their Ordinary Shares equal to or less than their Basic Entitlement shall have all tendered Ordinary Shares purchased in full under the Tender Offer. Following a scale back exercise, eligible Shareholders who validly tendered a percentage of Ordinary Shares greater than their Basic Entitlement will have a number of Ordinary Shares equal to their Basic Entitlement purchased in full plus approximately 19.70895 per cent. of their Individual Excess Tenders, in accordance with the process described in the Tender Circular.
After taking account of the rounding down of each valid applicant's participation to the nearest whole Ordinary Share, the Company will purchase in aggregate 9,810,979 Ordinary Shares under the Tender Offer.
Tender price
The price at which tendered Shares will be purchased (the "Tender Price") will be equal to 98 per cent. of the latest published unaudited Net Asset Value per Ordinary Share as at the Calculation Date of 20 May 2022, adjusted for the estimated related portfolio realisation costs per Tendered Share, as calculated by the Company. The final Tender Price for successfully tendered Ordinary Shares will be announced by the Company on 23 May 2022.
Payments to Shareholders by cheque (in the case of certificated holders) and through CREST (in the case of uncertificated holders), are expected to be paid as soon as practicable after 24 May 2022.
Balancing Ordinary Share certificates will be despatched (in the case of certificated holders) and CREST accounts will be settled (in the case of uncertificated holders) on or as soon as practicable after 24 May 2022.
Commenting on the results of the tender, Chairman of the Board Carolan Dobson said:
"The Directors of BlackRock Latin American Investment Trust plc have always recognised that our role is to act in the best interests of our shareholders. We have regularly consulted with our major shareholders to understand their objectives and used their input to guide our strategy and policies. We note their desire for the Company to continue with its existing investment policy and the overwhelming shareholder support for the vote on the continuation of the Company at the AGM today. We also recognise that it is in the long-term interests of shareholders that shares do not trade at a significant discount to their prevailing NAV and to this end, the Board put in place a discount control mechanism covering the four years to 31 December 2021 which has resulted in this tender offer for 24.99% of the Company's shares being implemented. This discount control mechanism has allowed our investment managers to take conviction based positions and be able to invest with confidence for a fixed period of time whilst also helping to maintain the share rating at a level that supports demand for the Company's shares. The Board has stated its intention to offer another discount control mechanism with a tender offer to be offered again for the four year period from 1 January 2022 to 31 December 2025 if certain performance and discount targets are not met and the continuation vote for each relevant biennial period within this time period is approved.
After a challenging year in 2021 the region has had a very strong start to 2022. Higher commodity prices, solid earnings momentum , historically cheap currencies and equity markets especially in Brazil create the potential for attractive returns for the region as a whole."
Defined terms used in this announcement have the meanings given in the Tender Circular unless the context otherwise requires.
Enquiries:
| BlackRock Investment Management (UK) Limited Sarah Beynsberger | 020 7743 2639 |
| Cenkos Andrew Worne Tunga Chigovanyika | 020 7397 1915 020 7397 1912 |
