Termination of the share buyback programme on the second trading line and issuance of tradeable put options
Today the Board of Directors of Castle Alternative Invest Ltd. has decided to terminate prematurely on 5 June 2019 the current share buyback programme on a second trading line on SIX Swiss Exchange, which started on 5 December 2018. With the end of the programme, 438,120 shares or 5.57% of the current share capital and voting rights were bought back. The buybacks mentioned before were done for cancellation purposes.
At the Annual General Meeting on 15 May 2019, the Board of Directors was authorised to carry out further share buyback programmes up to a maximum of 10% of the share capital.
On that basis the Board of Directors of Castle Alternative Invest Ltd. has decided today to issue put options tradeable on SIX Swiss Exchange. Each shareholder will be granted 1 put option free of charge for each registered share held. Every 20 put options will entitle shareholders to tender one registered share with a nominal value of CHF 5 at the exercise price of CHF 24.00. This represents a premium of 31.15% to the current market price of the registered share. The put options will be traded from 11 June 2019 to and including 25 June 2019. The put options must be exercised on 27 June 2019 (European style) by 11.00 a.m. CET at the latest. The net purchase price (exercise price minus 35% withholding tax calculated on the difference between the exercise price and the nominal value) will be paid on 28 June 2019.
As a result of the share buyback by issuing put options, Castle Alternative Invest Ltd. plans to repurchase up to 311,933 registered shares (3.97% of the outstanding share capital). It is intended to seek approval for the cancellation of all registered shares repurchased at the Annual General Meeting in 2020. Castle Alternative Invest Ltd. has mandated Zürcher Kantonalbank as Lead Manager of the transaction.
When considering whether to sell the put options on the stock exchange or to use them to tender registered shares, shareholders are advised to follow the instructions and recommendations of their custodian bank or other professional advisers.
In addition, the Board of Directors of Castle Alternative Invest Ltd. is considering launching a new share buyback programme on a second trading line following the share buyback programme through the issuance of tradeable put options.
Download PDF:
Buyback of own shares through the issuance of tradable put options for capital reduction
05 June 19, 7:00 PM