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Highlights
- Strategic Decision: Board opts for a managed wind-down after evaluating multiple proposals and consulting with shareholders.
- Investment Landscape Shift: Weiss Asset Management sees a less attractive opportunity set, unlikely to improve in the near future.
- Orderly Realisation Plan: Capital will be returned to shareholders as investments are gradually sold to maximize value.
Weiss Korea Opportunity Fund Ltd. (LSE:WHOF) has announced plans to pursue a managed wind-down of the Company following an extensive strategic review. The decision comes after consultations with advisers and shareholders, alongside a thorough assessment of alternative proposals.
Declining Opportunity Set Triggers Review
The Fund’s investment manager, Weiss Asset Management LP, previously advised the Board that the investment landscape for the Fund’s strategy had become less compelling than at its inception in 2013. The manager indicated that these conditions are unlikely to improve in the foreseeable future, prompting the Board to launch a strategic review in November 2024.
In response, the Board explored several options, including a potential change in investment mandate or combining assets with another investment company. After detailed discussions with shortlisted parties throughout January and February 2025, the Board ultimately concluded that the complexities of these proposals, coupled with differing shareholder views, made a managed wind-down the fairest and most practical course of action.
Focus on Maximizing Shareholder Value
The managed wind-down will not result in an immediate liquidation. Instead, the Fund’s portfolio will be gradually realised, with capital returned to shareholders as investments are sold in a way that aims to maximize value.
The Board plans to issue a shareholder circular by the end of March 2025, outlining the wind-down process and convening a general meeting to seek formal shareholder approval.
Next Steps for Shareholders
Shareholders will have the opportunity to vote on the proposal and related measures necessary to facilitate an orderly wind-down. While the process may take time, the Board and Investment Manager are committed to acting in shareholders' best interests, balancing efficiency and value preservation throughout the realisation process.
