Electra Private Equity has announced that it is reviewing the Company’s investment strategy and policy and its structure. The announcement says that the review “will look at all options for maximising long-term shareholder value” although it does not give additional detail on what these various options might be. However, the board say that they presently anticipate that the review will be completed during the autumn, the outcome will be announced to shareholders as soon as appropriate and, for the present, the Company’s business will operate as usual.
Following a series of requisitions from Edward Bramson’s investment vehicle, Sherborne Investors, Electra shareholders voted 53.5 percent in favour of appointing Edward Bramson (pictured) to the board at a general meeting on 5 November 2015 (Sherborne Investors owned 30% of Electra by this time). The passing of the resolutions also saw Sherborne’s chairman, Ian Brindle, appointed to Electra’s board and Electra’s then Chairman, Roger Yates, resign. The company say that, in relation to the general meeting on 5 November 2015, a significant proportion of shareholders indicated that they wished for a review to take place and that this has led the board to conclude that now is the right time to undertake one. The board also say that they, “remain open to further discussions with all shareholders”.
In the ten years to September 2015, Electra’s share price increased by 210% compared to 72% for the FTSE All-Share index. This corresponded to an annual return on equity of 13%, in line with Electra’s long-term objective of annual returns between 10% and 15%.
Electra announces to review all options for maximising long term shareholder value : ELTA