Electra Private Equity to start formal sales process – Electra Private Equity (ELTA) has reported in its half year results that it will begin a formal sales process.
The company returned £349 million returned to shareholders in December 2017, bringing the total in last 18 months to £1.8 billion.
It had told the market in a release about its second strategic review that it would set out the strategy of optimising value for shareholders through an evaluation of return on invested capital versus a return of cash to shareholders. The continued strong private equity market, particularly for secondary sales, has led the board to conduct a third and final phase. In this review it will “evaluate the acceleration of selective divestment of some or all of the portfolio, including exploring offers for the company as a whole, as a means of maximising shareholder value”.
The Panel on Takeovers and Mergers has agreed that any discussions with third parties with regards to the potential sale of the entire issued and to be issued share capital of the company may be conducted within the context of a ‘formal sale process’ (as referred to in the Takeover Code).
The board also announces the payment of a special dividend of 25p per share, payable to shareholders on the register at close of business on 8 June 2018 and payable on 28 June 2018.
The share price of Electra rose sharply on the news.
This news also has implications for Sherborne Investors (SIGB), which owns 29.9% of the shares of Electra Private Equity (ELTA) as its only investment.
ELTA : Electra Private Equity to start formal sales process