Electra to make anther distribution – Electra has announced an agreement for the sale of its larger non-controlled assets, Photobox and Knight Square at 103% of adjusted 31 March 2018 carrying value and the outcome of the third phase of its strategic review. There will be a general meeting on 30 October 2018 to consider the adoption of a revised investment objective and policy.
The board’s intention is to distribute excess cash as an initial special dividend of GBP140m (GBP3.65 per share) in December (subject to the completion of the Photobox transaction and adoption of the revised investment objective and policy), with a subsequent special dividend in respect of the GBP21m (GBP0.54 per share) proceeds of the sale of Knight Square anticipated to be received in the first quarter of 2019.
Photobox and Knight Square are being sold to funds advised by Lexington Partners L.P. The sale of Photobox is expected to complete in October, with an expected cash receipt of GBP98m. The sale of the interests in Knight Square is subject to regulatory approval, which is expected to be received in the first quarter of 2019. Upon completion of the Knight Square disposal the company will receive a further GBP21m in cash. This is in addition to a receipt of GBP13m from a Knight Square loan note repayment in August 2018.
This leaves Electra with some cash and stakes in TGI Fridays (valued at about £149m); Hotter Shoes (£50m); and other smaller investments totalling £15m. The board has therefore concluded, and recommends, that it is in the best interests of shareholders to conduct a managed wind-down of the portfolio over a period of time, allowing optimisation of returns, the return of cash to shareholders, and ultimately the winding up of the company. The board intends that until it is finally wound up, the company will continue to be listed on the London Stock Exchange in its existing listing category and will pay annual dividends funded by cash generated by the portfolio.
ELTA : Electra to make anther distribution