LHV Persian Gulf Fund has due to its uniqueness been popular among foreign investors. In order to improve the accessibility of LHV Persian Gulf Fund for foreign investors, the new domicile of the fund is going to be Luxembourg.
The re-domiciliation shall be carried out through a cross-border merger in which LHV Persian Gulf Fund participates as the merging fund and SEF-LHV Persian Gulf Fund (SICAV, UCITS) as the receiving fund. Prior to the merger, the receiving fund is an empty shell, i.e. it has no investors, assets nor liabilities. After the merger, the unit-holders of LHV Persian Gulf Fund are going to become shareholders of SEF-LHV Persian Gulf Fund.
The re-domiciliation is not going to have any material impact on the current investors. The fund shall continue to invest into the GCC region based on the current strategy. AS LHV Varahaldus as well as the fund manager Joel Kukemelk, will remain responsible for the investment management of the portfolio of the fund. Pursuant to the Estonian Income Tax Law, the redemption of units and the issue of shares in the course of a merger is not deemed to be a receipt of income. No action is required in relation to the merger by the clients who wish to remain investors to the fund.
The domicile of the fund is going to change through merger on April 13, when in the course of a corporate action the class A and class B units of LHV Persian Gulf Fund are redeemed and SEF-LHV Persian Gulf Fund shares are issued to the investors. For every class A unit, a share is issued; in case of class B units, the number of shares to be issued are determined on the basis of the following formula: number of class B units x class B unit net asset value / class A unit net asset value. SEF is a SICAV (société d’investissement à capital variable – investment company with variable capital) which has appointed Swedbank Management Company S.A., an entity part of the Swedbank Group, as its management company.
Investors who prefer not to keep investing into the GCC region through the Luxembourg domiciled fund, have the opportunity to exit the fund free of charge from February 26 to April 01.
In order to evaluate the effects of the merger and to make an informed decision on whether to participate in the Merger or not, we advise the unit holders to familiarize themselves with the following documents:
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