Dolphin Capital has this morning announced a series of measures that they believe will help narrow their discount to asset value. In a nutshell, they are raising €75m (but we don’t know the price yet so it’s not clear how dilutive this will be to existing shareholders – the guess would be very as the market cap. now is less than £150m and the shares are on a 69% discount ), they are splitting up the portfolio into core and non core assets and selling off the non core stuff (including Aristo, their Cyprus based developer), they are cutting the base fee to the lower of €8.5m or 1.25% of gross assets (yes it’s still a lot), they’ve appointed a new board (three of the new directors will get €500,000 per annum between them plus nil cost share option awards over 1.25% of the company), they’ve introduced an incentive fee for the managers to sell off the non core assets which kicks in if they get 65% of NAV for an asset and builds so they get 25% of any profit over NAV.
At the same time they have released results for the year ended 31 December 2014 which we can abbreviate to say the NAV before deferred income tax liabilities was more or less unchanged at 78p.
If you are interested in reading more, the full text of both announcements will be in the news section of the Dolphin page tomorrow.
DCI : Dolphin Capital announces capital raise and rejig of fees