| CATEGORY: NEWS AND ANNOUNCEMENTS SECTOR: EQUITY INVESTMENT INSTRUMENTS |
It's a buyer's market, Electra says |
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Tue 01 Dec 2009
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LONDON (SHARECAST) - Private equity investment firm Electra said its investment portfolio is ‘in good shape’ despite a tough year.
Net asset value (NAV) per share in the year to 30 September fell 4.5% to 1,720p from 1,801p. As at 24 November, the company’s NAV per share had eased further to 1717p.
Performance was hit by the requirement to write off its investment in office supplies group Vasanta, but the company’s chairman maintained ‘the diverse and defensive characteristics of our investments mean that Electra is well positioned for the future.’
Investment activity during the year was low, with just £88m invested compared to £114m the year before.
The company still has plenty of firepower to call on, with available investment capacity of £281m, comprising £54m of net cash, undrawn banking facilities of £185m and £42m of net proceeds from the issue of zero dividend preference shares earlier this year.
The company is convinced there are a number of distressed sellers out there and relatively few potential buyers with the capital to take advantage of the deals available.
‘These factors, together with Electra's flexible investment mandate, will enable Electra Partners to target the growing number of investment opportunities in the market including capital for restructuring, buyouts, private equity into public companies, development capital, secondary investments and debt,’ the company’s chairman, Sir Brian Williamson, said.
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