Share Price






Wed 1 Nov 2017, 14:55GMT

Exchange LSE

Investing Policy

With its Asia-centric focus, Alpha Returns Group Plc will actively seek to acquire and consolidate holdings in companies operating in high-growth Asian economies, with the intention to create and sustain long-term value. The Company may invest in any business sector within its targeted geographic focus.

The Directors see Asia-Pacific as having considerable growth potential for the foreseeable future and many of the prospects they have identified are in this region. The Directors will consider opportunities at all stages of development with a focus on early stage investments and the opportunities would generally have some or all of the following characteristics, namely:

  • a majority of their revenue derived from the Asia-Pacific, and strongly positioned to benefit from the region’s growth;
  • operating within an emerging industry with potential for rapid growth in sales;
  • a trading history which reflects past profitability or potential for significant growth going forward;
  • for developing companies, potential for increased profitability through expertise, economies of scale, savings, and operation efficiencies; and
  • where all or part of the consideration could be satisfied by the issuance of new Ordinary Shares or other securities in the Company. The Company does not currently intend to fund any investments with debt or other borrowings but may do so if appropriate.

It is anticipated that the main driver of success for the Company will be its focus, during the investment screening process, on the management involved in the potential investee companies and the potential value creation that the team of people is capable of realising. The Company will identify and assess potential investment targets and where it believes further investigation is required, intends to appoint appropriately qualified advisers to assist in the due diligence process.

The Company intends to be an active investor where appropriate having regard to the size of the Company’s investment, and the Directors will seek representation on the board of the investee company where they feel that an investee company would benefit from their skills and expertise.

Investments may be made in all types of assets falling within the remit of the Investing Policy and there will be no sector-driven investment restrictions. Investments may be made in either quoted or unquoted companies and structured as a direct acquisition, joint venture or as a direct interest in a project. The Company aims to structure its investments tax efficiently through the use of intermediate holding vehicles in tax efficient jurisdictions.

New investments will be held for the medium to longer term, although shorter term disposal of any investments cannot be ruled out. There will be no limit on the number of projects into which the Company may invest or the amount to be invested in any project and the Company’s financial resources may be invested in a number of propositions or in just one investment, which may undertake an investment which might be deemed to be a reverse takeover pursuant to Rule 14 of the AIM Rules. Where the Company builds a portfolio of related assets it is possible that there may be cross-holdings between such assets.

In addition, the Company may from time to time invest in liquid securities in order to attain a highly-invested status and avoid cash drag to enhance portfolio returns. Such securities may include:

  • Government debt and exchange-traded corporate bonds;
  • Exchange-traded equity securities;
  • Index funds and exchange-traded funds; and
  • Mutual funds and other investment funds capable of redemption.

No more than fifty per cent. of the Company’s gross assets will be invested in such liquid securities at the point of investment.

The Company intends to deliver Shareholder returns principally through capital growth rather than capital distribution via dividends. Given the focus on early stage investments, valuations will occur twice yearly to coincide with the preparation by the Company of its half-yearly report and annual accounts.

The Directors believe that their broad collective business and investing experience as set out on the Company's website will assist them in the identification and evaluation of suitable opportunities and will enable the Company to achieve its investing objectives.