Over the course of 2016, Kubera Cross Border’s net assets decreased from US$55.33 million to US$41.37 million during the year ended 31 December 2016. The fund’s net asset value per share decreased from US$0.50 to US$0.38. The share price has remained fairly constant at around US$ 0.20 between 31 December 2015 and 31 December 2016. The discount decreased from 60 per cent as at 31 December 2015 to 50 per cent as at 31 December 2016.
The decline in NAV is mainly due to reduction in the carrying values of the investments in PlanetCast and Synergies Castings where we have applied transaction discounts to reflect the lack of liquidity and credit risks.
Post year end, on 20 March 2017, they announced that a leading global private equity firm has agreed to purchase Kubera Cross-Border Fund (Mauritius) Limited (“Kubera Mauritius”)’s entire equity interest held by PlanetCast for a consideration net of transaction costs estimated at INR 1,475 million, equivalent to approximately US$22.9 million (at exchange rates of 25 April 2017) and US$23.8 million at the exchange rate prevailing as at 31 December 2016. Kubera Mauritius is ultimately owned by the Company.
In the case of Synergies Castings, a dialogue with a prospective buyer is progressing well. The terms of the transaction, if closed, involve a phased purchase of the fund’s equity over the 12 months from signing, assuming a variety of conditions are met, and the purchase of our debt over a 12-month period following the purchase of our equity. The aggregate consideration will be US$14.6 million if the transaction completes as currently agreed in principle.
KUBC : Kubera says Synergies Castings talks are progressing well