BLACKROCK HEDGE SELECTOR LTD ("the Company") REDEMPTION FACILITY The Company's Articles of Association provide that if the UK Emerging Companies Shares have traded on the London Stock Exchange at an average discount to the prevailing NAV per Share over the relevant Discount Calculation Period, the Company may in the absolute discretion of the Directors invite UK Emerging Companies Shareholders to request the redemption on any Redemption Date of up to a maximum of 20 per cent. or such lesser maximum percentage as the Directors in their absolute discretion may from time to time specify (the "Basic Entitlement") of the UK Emerging Companies Shares in issue at the relevant Redemption Notification Date (excluding any Shares held in treasury). Redemption proceeds will be calculated based on the UK Emerging Company Share Class NAV as at the relevant Redemption Valuation date. As stated in the Circular dated 21 March 2013, the Directors intend to use their discretion to implement the Redemption Facility with respect to a Redemption Valuation Date if the UK Emerging Companies Shares have traded at a discount to Net Asset Value during the calendar quarter ending on the previous Redemption Valuation Date (the "Discount Calculation Period"). The UK Emerging Companies Shares will be deemed to have traded at a discount to Net Asset Value per Share during the relevant Discount Calculation Period where, on average across all trading days in such Discount Calculation Period, the closing price at the end of each day is lower than the most recently announced Net Asset Value available in the market on that day. For the Discount Calculation Period for the Company for the December Redemption (1 October 2013 to 31 December 2013), the Company's UK Emerging Companies Shares traded at an average discount of 1.3% and therefore the Directors have determined to exercise their discretion to implement the Redemption Facility, with the next Redemption Valuation Date being 31 March 2014. It is expected that shareholders will receive proceeds of the redemption on or around 16 April 2014. The proceeds received by UK Emerging Companies Shareholders will be equivalent to the Net Asset Value of the UK Emerging Companies Shares at 31 March 2014 less the attributable costs of redemption which the Directors may in their absolute discretion deem appropriate, multiplied by the number of shares held. In order to participate in the March 2014 Redemption Facility, Shareholders must ensure that the Redemption Form for Certificated Shareholdings (correctly completed and together with the relevant share certificate(s)) or the USE message for Uncertificated Shareholdings, as appropriate, reach Computershare Investor Services PLC by no later than 3.00 p.m. on 17 January 2014 (unless the Directors of the Company determine otherwise). CREST members and (where applicable) their CREST sponsors should note that the latest time at which a USE instruction may settle is 3.00 p.m. GMT (the CREST deadline for settlement). CREST information for Uncertificated Shareholders is set out below:- Participant ID of the Registrar 0RA21 Member account ID of the Registrar HEDGESEL Corporate Action ISIN JE00B42J3Y72. In the case of Shares held in certificated form, a Redemption Form for Certificated Shareholdings may be obtained from the Company's website http:// www.blackrock.co.uk/BRHS/index.htm, or requested from the Company's Receiving Agent at the following address: Computershare Investor Services PLC Corporate Actions Projects Bristol BS99 6AH Shareholders should note that if they elect to redeem Shares they will be unable to deal in those Shares in the period between giving notice of intent to redeem and the actual date of the redemption. Once given, any such redemption notice shall be irrevocable without the consent of the Directors. This notice is for information only. Any Shareholder who is in any doubt whether or not to redeem their shares is recommended to contact an independent financial adviser. Defined terms used in this announcement have the same meanings attributed to them as in the Company's Circular dated 21 March 2013. Expected timetable: Latest date for submission of relevant USE 3.00 p.m. on 17 January 2014 instruction(s) or receipt of the Redemption Form Certificated Shareholdings and share certificate (as appropriate) Redemption Valuation Date 31 March 2014 March 2014 Redemption Date Expected to be on or around 16 April 2014 Enquiries: Ian Webster Company Secretary BlackRock (Channel Islands) Limited Tel: 01534 600800
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