The Board of Electra Private Equity PLC (the “Company”) today announces the outcome of the second phase (“Phase II”) of its strategic review as first announced on 25 January 2016 (“the Review”). The commencement of Phase II was announced on 1 June 2017, following assumption of responsibilities from the former manager.
The principal objective of the Review is to maximise long-term shareholder value by assessing the Company’s investment strategy and policy and its structure.
The key outcomes of activity undertaken since Phase I of the Review was announced in October 2016 have been:
Strategic Review: Phase II
The key outcomes of Phase II of the Strategic Review are:
Current Pro Forma Composition of Net Asset Value
(Based on Unaudited 31 March 2017 valuations)
|Pro Forma as at 23 October 2017(1)|
|Cash and Cash Equivalents(3)||435.1||1,137p|
|Assets Sold but not Yet Closed||42.4||111p|
|Other Net Assets/(Liabilities)||(4.0)||(10p)|
|Net Asset Value||776.5||2,028p|
Giving effect to the 914p dividend declared by the Company on 23 October 2017, pro forma net asset value would be £426.6 million (1,114p per share), comprised of net investments of £302.9 million, net cash balances of £81.2 million, and assets sold but not yet closed of £42.4 million.
Updated valuations as at 30th September 2017 will be published with the Group’s results to 30th September 2017 in December.
Neil Johnson, Chairman of Electra Private Equity PLC, said today:
“I am pleased to present the findings of Phase II of the strategic review to shareholders. Having had the opportunity to review the portfolio fully for the first time, the Board remains firm in its conviction that the changes identified and implemented through the review process have been essential to driving shareholder returns both at the present time and in the future. Our analysis of the portfolio has also highlighted opportunities to create genuine value as opposed to transient shifts in valuation or financial engineering.
The Company has the required operational resources in place while benefitting significantly from the sizeable reduction in costs. Consistent with our stated aim to return excess capital to shareholders, I am delighted to announce a further special dividend taking total distributions to £1.9 billion since the resumption of distributions to shareholders in 2015. We will continue to manage the Company’s capital needs closely with a view to optimising returns for shareholders.
We are also taking the first steps towards migration of the Company from a listed investment trust to a structure that we believe represents a more flexible platform for the future. At the same time we will change our name to remove the words “Private Equity” from our name to more accurately reflect the nature of the business in this exciting phase of its development and I look forward to discussing these and other matters with our shareholders in due course.”
* The special dividend will not fall within the Dividend Reinvestment Plan.