ARCH Arc Capital

 

TIDMARCH 
 
RNS Number : 1911X 
ARC Capital Holdings Limited 
01 December 2010 
 

ARC Capital Holdings Limited 
1 December 2010 
 
 
                          ARC Capital Holdings Limited 
 
 
                    Distribution & Reinvestment Policy Update 
 
The Board of ARC Capital Holdings Limited ("ARCH" or the "Company") and its 
investment manager, ARC Capital Partners Limited (the "Manager"), are pleased to 
announce the results of their review of the Company's distribution and 
reinvestment policies. 
In the aftermath of the 2008 global financial crisis, the price of the Company's 
Ordinary Shares ("shares") traded for an extended period of time at a 
significant discount to its Net Asset Value ("NAV"). In response, on 1 April 
2009, the Board and the Manager announced measures designed to close the share 
price discount to NAV without prejudicing the longer term returns of the 
Company, including changes to ARCH's distribution policy, reinvestment policy 
and the Manager's performance-based compensation. 
As market conditions improved and the Company's investments matured, ARCH's 
share price has increased from US$0.40 to US$1.27, and the share price discount 
to NAV has been reduced from 66% to 8% during the period between 1 April 2009 
and 29 November 2010. During this time, ARCH adhered to a policy of ceasing new 
investment and pursuing realisations to reduce the Company's liabilities and to 
accumulate cash. 
As of 26 November 2010, ARCH held a total of approximately US$180 million in 
cash, of which US$64 million is freely distributable. The Board intends to 
direct the Company to return substantially all of the freely distributable funds 
to shareholders by way of a tender offer of up to 10% of ARCH's shares. Details 
of the tender offer will be provided in a separate announcement. 
The Board determined that it was appropriate to review ARCH's distribution and 
reinvestment policies following the recent successful realisations of the 
Company's investments and the narrowing of the discount to NAV. Following 
extensive informal consultation with the Company's broker and shareholders, the 
Board has decided that it is in the interests of shareholders as a whole for 
ARCH to resume investment of a portion of all realisation proceeds as and when 
the Manager identifies suitable attractive investment opportunities. Effective 
immediately, the Board has authorised the Manager to utilise the undistributed 
cash corresponding to returned principal of each investment (or in the case of 
realisation at less than cost, the proceeds received) for reinvestment. 
Subject to retaining sufficient cash to meet operating costs, liabilities and 
contractual follow-on investment commitments, the Board intends to direct the 
Company to distribute substantially all income and net profits generated from 
the realisations of each investment in an effort to continue to minimise any 
share price discount to NAV. Such distributions may be effected through 
additional tender offers, share buy-backs or other methods of returning capital, 
as determined by the Board from time to time. 
The Board will continue to review ARCH's distribution and reinvestment policies 
on a regular basis with particular consideration given to any prevailing share 
price discount to NAV and the performance of the Company. 
 
For more information, please contact: 
 
+---------------------------+------------------------------+ 
| MANAGER:                  | LEGAL COUNSEL:               | 
| Allan Liu, Managing       | Jon Lewis, General           | 
| Partner                   | Counsel                      | 
| c/o ARC Capital Partners  | c/o Pacific Alliance         | 
| Limited                   | Group                        | 
| 13/F St. John's Building  | 16/F St. John's Building     | 
| 33 Garden Road,           |                              | 
| Central, Hong Kong        | 33 Garden Road,              | 
| T: (852) 3115 0243        | Central, Hong Kong           | 
| F: (852) 3115 0244        | T: (852) 2918 0088           | 
| aliu@pacific-alliance.com | F: (852) 2918 0881           | 
|                           | jlewis@pacific-alliance.com  | 
|                           |                              | 
+---------------------------+------------------------------+ 
| BROKER:                   | NOMINATED ADVISER:           | 
| Hiroshi Funaki            | Philip Secrett               | 
| LCF Edmond de Rothschild  | Grant Thornton Corporate     | 
| Securities                | Finance                      | 
| T: (44) 20 7845 5960      | T: (44) 20 7383 5100         | 
| F: (44) 20 7845 5961      | Philip.J.Secrett@gtuk.com    | 
| funds@lcfr.co.uk          |                              | 
+---------------------------+------------------------------+ 
| INVESTOR RELATIONS:       | MEDIA RELATIONS:             | 
| Chong Min Yi              | Andrew Walton / Laura        | 
| Pacific Alliance Group    | Pope                         | 
| T: (852) 3719 3319        | Financial Dynamics,          | 
| cyi@pacific-alliance.com  | London                       | 
|                           | T: (44) 20 7269 7100         | 
|                           |                              | 
|                           | Christine Wood / Queenie     | 
|                           | Tsao                         | 
|                           | Financial Dynamics, Asia     | 
|                           | T: (852) 3716 9800           | 
+---------------------------+------------------------------+ 
 
 
About ARC Capital Holdings Limited 
 
ARC Capital Holdings Limited ("ARCH") (AIM: ARCH) is a closed-end investment 
company with net assets of US$591.5 million as at 31 October 2010. ARCH was 
admitted to trading on the AIM Market of the London Stock Exchange in June 2006. 
ARCH makes and holds investments in the retail, consumer goods and consumer 
services sectors, principally in China but also in neighboring Asian countries. 
Target investments include regional hypermarkets and supermarkets, dominant 
consumer brands, specialty retail chains, retail property assets and retail and 
consumer service providers. 
 
For more information about ARCH, please visit: www.arch-fund.com 
 
ARC Capital Holdings Limited is a member of Pacific Alliance Group ("PAG"), one 
of the leading Asian alternative investment managers. Founded in 2002, PAG 
manages funds covering private equity, real estate, hedge fund and distressed 
investments and has offices across Asia including Hong Kong, Shanghai, Beijing 
and Tokyo. 
 
For more information about PAG, please visit: www.pacific-alliance.com 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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