Electra Private Equity (Electra) has announce that it is declaring a special dividend of £1.0 billion, representing 2,612p per share, to be paid on 5 May 2017 to shareholders on the register of members at the close of business on 7 April 2017. Electra says that its estimated pro forma NAV per share, as at 28 February 2017, was 5,327p, after adjusting for realisations announced since 30th September 2016, the tender proceeds and 2016 dividend payments. The special dividend represents 49.0% of this adjusted NAV.
Electra says that the notice of termination of its ‘outsourced management contract’ has reduced the number of new investments being made and, with continued realisations, has resulted in the accumulation of significant cash. Prior to this dividend, pro-forma cash, based on transactions announced but in some cases still to complete is expected to be approximately £1.4bn.Electra’s board says that it believes that it is best practice to return excess capital to shareholders and will continue to monitor the Company’s capital needs as part of the second phase of its strategic review, which it intends to begin in June 2017.
Electra returning 49% of its capital through a special dividend of £26.12 per share : ELTA