Regent Pacific has re-launched its range of Tiger funds, suspended in August 1998 after the Russian ...
Regent Pacific has re-launched its range of Tiger funds, suspended in August 1998 after the Russian debt crisis and rouble devaluation.
A court in the Cayman Islands has now approved the plan to issue shareholders in the Red, White, Gold and Blue Tiger funds and the Eastern European hedge fund with units in two new funds.
The first is Novy Tygr, an open-ended Cayman Islands- domiciled equity fund that will value weekly and trade monthly.
It will be managed by a team of investment managers led by David Curl, who will invest purely in equities concentrating on blue chip names. The fund is currently valued at around $115m. The debt portion of the portfolios will be rolled into Regent Russian Bond fund.
This fund will hold the restructured GKO's instruments (local currency denominated Russian T-bills). This will be effectively a realisation fund, and as cash is raised on these instruments it will be returned to shareholders. The fund contains around $13m.
In April 1998 the Tiger funds' combined value was around $285m, according to Forsyth Partners. By early August 1998 the combined Tiger funds' value was around $200m, according to Christy York, marketing manager at Regent Pacific.
In addition, the company has received $75m in indications of interest for an Eastern European banking fund, which will be structured as a private equity limited partnership. It will take control stakes in Eastern European banks and will have its first closure in March.
The company was forced to suspend trading on 12 of its Dublin-domiciled funds due to their holdings of GKOs.
Partly because of the re-launch of the Russia funds but also because of other group activities, particularly ventures in Korea, the Hong Kong-listed group's share price jumped sharply in late January.
Trading was briefly suspended on 21 January after the price rose 63%.
Regent chairman, Jim Mellon, said he expects profit growth of 30% for the fiscal year 2000, fuelled by the recovery in Korea.
York said: "With our recent deal to set up Regent Korea, a financial services supermarket, we have an online business with a bricks and mortar element which has earnings of $100m per year and a value of five times earnings."
"Compared with the inflated prices that many Asian internet stocks command, this seems quite reasonable.
The plan is to list the company on the Nasdaq in late summer 2000. York said: "This has revived interest both in the Korea venture and in the share price of Regent Pacific."
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