FRANKFURT, Germany, June 3, 2013 /CNW/ -
First-ever tender offer by private investor for European government
First-ever unmodified Dutch auction for sovereign bonds
Significant premium to price in December 2012 government buy-back
Japonica to align its long-term investment interests with Greece
Japonica Partners & Co. announces an invitation by its indirect
wholly-owned subsidiary Yerusalem Hesed, Ltd. (the "Acquirer") for
eligible holders of certain series of bonds issued by Greece in 2012 to
sell the bonds for cash. The amount to be purchased will be up to €2.9
billion in face value which represents less than 9.9% of the total
outstanding €29.6 billion of Greece government bonds. The purchase of
the bonds by the acquirer would permit existing holders to monetize
their Greece government bonds.
This offer marks the first time ever that a private investor tenders for
European government bonds. Also for the first time ever, purchase
prices for a sovereign bond tender will be determined by an unmodified
Dutch auction. The rationale for this highly innovative tender
procedure is to apply an effective method to purchase institutional
blocks of these bonds in an orderly and price-efficient manner.
The invitation provides maximum flexibility by enabling the acquirer to
make immediate purchases and by giving investors a right to withdraw
prior to acceptance or the tender deadline. The expected tender
deadline is 5:00pm Central European Time on 1 July 2013, unless
otherwise revised in accordance with the Tender Offer Memorandum.
The minimum purchase price for each of the series of bonds is 45.0% of
their principal amount, a 26.5% premium to their average price in the
December 2012 Greece government bond buyback, and a 15.2% premium to
the average closing price on 27 March 2013.
Japonica believes that the market for Greece government bonds is
volatile, highly illiquid, and at any time not necessarily reflective
of their intrinsic value. During a 42 trading day period in the first
quarter of 2013, historical price volatility included a 27.8% decline
in average price. The minimum purchase price is a discount to the most
recent average price.
A Japonica spokesperson said: "This tender offer reflects Japonica's
long-term perspective on Greece and the progress that the country has
made to date. It is Japonica's goal to align its investment interests
with those of Greece."
Japonica Partners is an entrepreneurial investment firm that makes
concentrated investments in underperforming global special situations.
Founded in 1988, Japonica Partners has developed and builds "perfectly
aligned" relationships that both cultivate entrepreneurial returns and
are the foundation of low risk. With its high value creation core
competencies, Japonica invests to significantly raise the bar for the
best investments globally. Japonica Partners is not a fund, nor does it
provide investment advice.
The invitation is restricted to certain eligible institutional investors
and bonds may only be tendered for purchase in a minimum principal
amount of €1,000,000 and multiple integrals of €1 in excess thereof.
The invitation is being made on the terms described in the Tender Offer
Memorandum to be issued on or about 5 June 2013. Further details,
including the relevant series of bonds, will also be contained in an
announcement to be promulgated together with or shortly before the
Tender Offer Memorandum.
The Invitation has not been authorised by, and the Acquirer is not
otherwise connected to, the Hellenic Republic.
Neither the Acquirer nor Japonica Partners nor any of their respective
agents, directors, employees or affiliates makes any recommendation
whatsoever regarding this announcement, the Tender Offer Memorandum or
the invitation, in particular as to whether or not holders should
participate in the invitation or refrain from taking any action in
connection with the invitation, and none of them has authorized any
person to make any such recommendation. The invitation is not being made by Japonica Partners, nor does Japonica
Partners accept any responsibility to the holders for the settlement of
the invitation and/or the payment of any purchase price for the bonds
pursuant to the invitation.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION TO ANY U.S. PERSON OR IN OR
INTO THE UNITED STATES TO ANY U.S. PERSON (AS DEFINED IN REGULATION S
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED), OR TO ANY
PERSON LOCATED OR RESIDENT IN ANY OTHER JURISDICTION WHERE IT IS
UNLAWFUL TO DISTRIBUTE THIS DOCUMENT. THE INVITATION IS SUBJECT TO
RESTRICTIONS IN CERTAIN JURISDICTIONS (IN PARTICULAR, THE UNITED
STATES, THE UNITED KINGDOM, THE REPUBLIC OF ITALY, BELGIUM, FRANCE, AND
THE HELLENIC REPUBLIC) AS MORE FULLY DESCRIBED IN THE TENDER OFFER
SOURCE: Japonica Partners
For further information:
International Media Contact
Greece Media Contact