Hedge fund manager feels like a New Man

Hedge fund manager Man Group is planning to create a new group holding company, Man Strategic Holdings, which it believes will reduce the group's capital base and improve its access to distributable reserves, thus enabling it to continue with its dividend policy.

In essence, shareholders will see their shares in "old Man" replaced on a one-for-one basis in the holding company, dubbed "New Man" in the announcement. Man Strategic Holdings will then be renamed Man Group.

Once the scheme becomes effective, the firm is proposing to reduce the share capital of New Man to create distributable reserves in the holding group, a move that is not expected to affect the market value of New Man ordinary shares.

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Shareholders are to vote on the new structure on October 17th, with 75% of the vote needed to pass the changes.

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