Alpine Select AG

DGAP-News: Alpine Select AG: Open letter to the shareholders of HBM Healthcare Investments AG

EQS Group-News: Alpine Select AG / Key word(s): Investment/AGM/EGM
Alpine Select AG: Open letter to the shareholders of HBM Healthcare
Investments AG

04.06.2014 / 10:33


Open letter to the shareholders of
HBM Healthcare Investments AG

Zug, June 4 2014

Your vote counts:
Strengthen shareholders' democracy and simultaneously help diminish the
discount to book value

Dear Shareholders,

Alpine Select Ltd ("Alpine"), the longstanding and largest shareholder
(10.3%) of the investment company HBM Healthcare Investments Ltd ("HBM"),
has submitted an addition to the agenda of the forthcoming Annual General
Assembly (AGM) on June 20, 2014 requesting for the statutory percentage
transfer restriction to be abolished. This limitation of transferability
(known in German as "Vinkulierung") acts as a substantial limitation of the
shareholders' vote, the most important shareholder right. The proposed
abolition intends not only to remove this impediment, but also to
contribute towards attracting new shareholders and subsequently to reduce
the substantial discount of the share price to the Net Asset Value (NAV).
We ask for your support: Register your shares in the registry before the
record date June 10, 2014 and exercise your right to vote!

HBM needs new shareholders to eliminate the discount

Alpine has held shares in HBM for almost eight years. When we first bought
shares, they were trading at a 15% discount; in the last few years, this
gap between HBM's share price and its NAV has grown to an average of 30%
(one of the largest discounts among Swiss investment companies). This means
that hundreds of millions of equity value can thus not be realized. Over
the years, we have come to realize that despite all the promises and
efforts by HBM's Board of Directors, there is unlikely to be any
improvement in the foreseeable future. To close the value gap, HBM urgently
needs - alongside other measures - to attract new shareholders or increased
demand for HBM shares. Alpine has continuously supported the company in a
constructive manner but as long as HBM's Investment Management and Board
remains intransigent, new shareholders will continue to shy away.

The percentage restriction on transferability and voting rights is against
shareholders' interests

HBM is the only listed investment company on the Swiss stock exchange with
restrictions on voting rights. The Board of Directors can and does refuse
registration of shares of investors holding more than 10% of the company
and thus restricts their voting right. In effect, this unilateral
regulation works as an entry barrier and protects the Board of Directors
and the investment manager HBM Partners.

The large discount to NAV should attract new shareholders - not scare them

The trend over the last years continues and with it the insight that each
share should have one vote. The HBM team is doing a good job and it is
indeed worth investing. However, today, many large investors, investment
funds and pension funds avoid companies that limit shareholders' rights. By
abolishing the restricted voting right we send out a clear message to the
capital market that shareholders are welcome at HBM and that their rights
are 100% respected.

The Board of Directors and Investment Manager are sufficiently protected

HBM argues that they need to protect themselves from shareholders wanting
to influence investment decisions - however, the voting rights do not even
allow shareholders to do this! Based on the articles of incorporation, the
Board of Directors and the mandated manager HBM Partners continue to make
the investment decisions. Even if a newly constituted Board in the futures
should wish to separate from HBM Partners, a two year notice period would
apply. No other management committee in Switzerland is more "protected"
than at HBM.

Dear fellow shareholders, regarding agenda item 10 at the forthcoming AGM,
please vote in favor of our proposal to abolish the limitation of voting
rights. This in your and the company's best interest.

Please do not hesitate to contact us at
- we are happy to answer any questions you may have. Alternatively, we
invite you to visit our website

On behalf of the Board of Directors of Alpine Select Ltd

Raymond J. Baer  Thomas Amstutz

About Alpine Select
Alpine Select Ltd is an investment company domiciled in Zug and has been
listed on the Swiss Stock exchange since 1998. The company offers
institutional and individual investors the opportunity to buy into a broad
portfolio. Alpine Select maintains an active and constructive dialogue with
management and board of directors of its portfolio companies in the best
interest of its shareholders. Alpine Select does not charge any management
or performance fees. The Company's shares are liquid and have always traded
at or close to its Net Asset Value.

End of Corporate News


04.06.2014 This Corporate News was distributed by EQS Schweiz AG. - news archive:

The issuer is responsible for the contents of the release.


Language:    English
Company:     Alpine Select AG
             Bahnhofstrasse 23
             6300 Zug
Phone:       +41 41 720 4411
Fax:         +41 41 720 4412
ISIN:        CH0019199550
Valor:       A0B739
Listed:      Freiverkehr in Berlin; SIX

End of News    EQS Group News-Service
272113 04.06.2014

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