RAB Directors OK Delisting Plan

Jul 15 2011 | 11:16am ET

RAB Capital is a step closer to delisting after its board of directors approved a planned management buyout.

An independent committee of the board—composed of those four directors not participating in the buyout—unanimously approved the plan, which would pay shareholders £0.10 per share, a 23% premium to their value the day before the original delisting plan was announced. Those shareholders will vote on Aug. 10.

If they approve the deal, a new private company, RAB Holdings, will buy what's left of RAB, which will have seen its assets fall from more than US$7 billion to a predicted US$200 million by October, the victim of big losses in 2008 and heavy redemptions since then.

"Following completion of the buyout, the objective of the directors of RAB Holdings will be to stabilize the business over the near term and to manage the remaining strategies with the intention of safeguarding the position of the remaining investors in RAB funds," the board said.

The new company will be much smaller, with staff cuts expected to reduce its headcount by half to about 35, and with just four hedge funds in its lineup.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…