Japonica Partners Announces Tender Offer for up to EUR 2.9bn Greece Government Bonds

AsiaNet 53260

FRANKFURT, Germany, June 3 / PRN=KYODO JBN/ -

    - First-ever tender offer by private investor for European government bonds

    - 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 EUR2.9 billion in face value

which represents less than 9.9% of the total outstanding EUR29.6 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

EUR1,000,000 and multiple integrals of EUR1 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 MEMORANDUM.

    International Media Contact

    CNC

    Xander Heijnen

    O: +49-89-59-94-58-127

    xander.heijnen[@]cnc-communications.com

    Greece Media Contact

    Foresight

    Iris Yennimata

    O: +30-2107486006

    iyennimata[@]foresight.gr

    Stratcom

    Vasilis Kavvalos

    O: +30-210-67-53-585

    kvalos[@]stratcom.gr

    Source: Japonica Partners