Clime Private Limited
On 3rd November 2016, Clime Investment Management Limited (Clime) undertook the separation of its shareholding in Jasco Holdings Limited via a new subsidiary company Clime Private Limited (Clime Private). Shares in Clime Private were then distributed to shareholders of Clime through the “Demerger”.
The Demerger will simplify Clime’s structure and has the potential to unlock shareholder value. Shareholder value may be enhanced by providing clarity to investors that Clime is a pure fund manager and not an investment company. Following the Demerger Clime will deploy its assets in fee income accretive investments only. Clime will not be seeking any long term passive investments. It will only be looking at opportunities where the management team will be operating the business.
Clime distributed all of the shares in Clime Private on 11th November 2016 by effecting an equal reduction of Clime’s share capital on the basis of 1 Clime Private Share for every 1 Clime Share held. Clime shareholders received an in specie return of capital by way of the distribution of Clime Private Shares in proportion to the number of shares held by Shareholders as at the Record Date. Clime Shareholders retained direct ownership of Clime and received direct ownership of Clime Private.
Clime Private will operate as an unlisted public company and has been seeded with an advance of $50,000 in cash from Clime repayable from distributions that Clime Private may receive from Jasco Holdings Limited.
The advance of working capital for Clime Private by Clime, will assist Clime Private to meet its operational costs before receiving any revenue from its shareholding in Jasco Holdings Limited.
A copy of relevant sections regarding the separation of Clime Private from the Notice of Annual General meeting of Clime is available here.