Everest Babcock & Brown Alternative Investment Trust (EIB) plans to delist from the ASX to address EBI's trading discount to NTA which is currently 33%. EBI is a fund of hedge funds and has exposure to a portfolio of international absolute return funds and selected direct investments.
The proposal is to be voted on by its security holders on October 3 and EBI plans to put in place redemption facilities ahead of and after its de-listing.
EBI Chairman, Trevor Gerber said: "The trading discount to NTA is an issue of concern to many listed investment vehicles in the market today. The Board has been looking at potential solutions for some time and in developing our proposal we have been mindful to balance the needs of Unitholders who would like reasonable levels of liquidity in the short term, with those of investors who have invested for the longer term, by ensuring the value of the underlying investments are not compromised.
The proposal allows Unitholders who wish to exit to progressively redeem from EBI at a price closer to the underlying value of their units."
To view EIB's statement to the ASX click here or to read commentary on the delisting, including a comparison to similar moves by hedge fund manager Ellerston, click here.
