Majedie Investments : MAJE – changes to management arrangements

Majedie has appointed Majedie Asset Management as its sole investment manager and has decide to close its hedge fund business, Javelin Capital and redeem its £29.5m investment in Javelin Capital Emerging Markets Alpha Fund. Majedie Asset Management will purchase 10% of its share capital from Majedie Investments – reducing the fund’s interest in the asset management business to 18%. MAJE will get £18m for its stake – £900,000 more than the carrying value for the asset management business in MASJE’s accounts. MAJE will reduce its stake by a further 2.5% per annum over the next four years. The proceeds from the alpha Fund redemption will be reinvested in Majedie Asset Management’s Turquoise Fund – a long / short equity fund aiming to generate steady capital growth.

The changes will require shareholder approval and MAJE will be convening an extraordinary general meeting.

MAJE’s dividend will be cut – the Board expects to declare dividends totalling 7.5p per share in the current financial year ended 30 September 2014.

James Carthew
Written By James Carthew

Head of Investment Company Research

Leave a Reply

Your email address will not be published. Required fields are marked *