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1 September 2021
Third Point Investors Limited
Response to Shareholder Communication
The Board of Directors (“Board”) of Third Point Investors Limited (“TPIL” or the “Company”) acknowledges receipt of another requisition for an Extraordinary General Meeting from Asset Value Investors (“AVI”) and three other shareholders, the signatories being the same as those who attempted to requisition an EGM earlier this summer (the “July Requisition”).
The Company, following guidance from its legal and other advisors in both Guernsey and the UK, determined that the July requisition was flawed as the shareholder resolution proposed would have been ineffective even if passed. This latest requisition (the “August Requisition”) is declined for similar reasons. The results of the proposed advisory vote would have no legal effect and therefore the Company declines to hold any such EGM.
The discount control package announced at the beginning of April set out a series of measures which were structured to narrow the discount over time, in line with feedback from the majority of shareholders. The Board believes that this package is in the best interests of the Company and its shareholders as a whole, and the decline in discount following the announcement suggests that the market takes a similar view. Nevertheless, the Board wishes to see further discount reduction, implicit in the package presented in April, and will be proactive in keeping the parameters of the programme under review.
The Board also notes that shareholders had the opportunity on 8th July 2021, three months following the announcement of the Company’s strategic review, to vote at the Company’s Annual General Meeting. At the AGM, the independent directors were re-elected by a significant majority. There will be another AGM next year where shareholders will have the right to vote and express their views on the directors, should they wish the Company to take a different direction.
In the meantime, the Board will continue to manage the Company in the manner it believes to be in the best interests of all shareholders and in line with its obligations under Guernsey law, the Guernsey Code of Corporate Governance, and the applicable principles and recommendations of the AIC code of corporate governance, as well as by the Listing Rules of the London Stock Exchange. The Board will also continue with its ongoing programme of shareholder engagement and welcomes the input and views from all of our shareholders through all appropriate avenues.
The Board notes that, thanks to the extremely strong performance of the portfolio and the effect of the discount control programme, the discount to NAV continues to narrow, and has recently traded in a range of 10-15%. As a result of extremely strong NAV performance and positive reaction to the measures described above, the TPIL share price is:
Up 19% since the announcement of the results of our Strategic Review
Up 31% year-to-date
Up 73% on a 12-month basis
As stated, the Board is not satisfied with this level of discount and will continue to implement its discount control programme, while remaining proactive in seeking any further enhancements necessary.
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Notes to Editors
About Third Point Investors Limited
Third Point Investors Limited (LSE: TPOU) was listed on the London Stock Exchange in 2007 and is a feeder fund that invests in the Third Point Offshore Fund (the Master Fund), offering investors a unique opportunity to gain direct exposure to founder Daniel S. Loeb’s investment strategy. The Master Fund employs an event-driven, opportunistic strategy to invest globally across the capital structure and in diversified asset classes to optimize risk-reward through a market cycle. TPIL’s portfolio is 100% aligned with the Master Fund, which is Third Point’s largest hedge fund. TPIL’s assets under management are currently $1.1 billion.
About Third Point LLC
Third Point LLC is an institutional investment manager that actively engages with companies across their lifecycle, using dynamic asset allocation and an ethos of continuous learning to drive long-term shareholder return. Led by Daniel S. Loeb since its inception in 1995, the Firm has a 35-person investment team, a robust quantitative data and analytics team, and a deep, tenured business team. Third Point manages approximately $17.2 billion in assets for sovereign wealth funds, endowments, foundations, corporate & public pensions, high-net-worth individuals, and employees.