Urged to proceed with caution by action group EEA Investors’ Group, run-off investors looking to sell their shares were instructed to register with Tullett Prebon Alternative Investments (TPAI) before 23 March with a strike price offer expected to be announced around 5 April 2016.
On 31 March, TPAI send an email to investors who had registered to sell their run-off shares, advising:
“Due to the complex nature of this asset class, prospective bidders have requested additional time to complete their due diligence on the run-off share class. We will update those who have registered for the process over the next few weeks with an amended timeline for the strike price announcement.”
Long road
Launched in 2005, the EEA fund experienced a rush of redemptions in 2011 after the Financial Conduct Authority (FCA) warned retail investors not to invest in what it controversially described as “death bonds”.
Suspended in 2011, the fund resumed trading in 2014 after the Guernsey Financial Services Commission approved a restructure that divided shares into continuing shares for those wishing to remain in the fund and run-off shares for those wanting out.
In August 2015, EEA announced that it was in discussions with TPAI about running a secondary sale process for run-off shareholders.
TPAI will match its clients who have indicated that they wish to purchase run-off shares with EEA run-off shareholders who are looking to sell.
No announcement has been made with regard to a future strike price date.
