25th Feb 2015 17:22
LONDON (Alliance News) - Activist investor Sherborne Investors has renewed its efforts to influence matters at Electra Private Equity PLC with new proposals to make changes to the private equity investment trust's board and review options to increase shareholder value.
In addition, one of the publicly traded vehicles through which Sherborne acts is looking to raise up to GBP100 million in a move that could result in an increase to the 25.16% stake that Sherborne currently holds in Electra.
Sherborne's renewed interest in Electra Private Equity comes after the FTSE 250 constituent said earlier this month that it would begin to make returns to shareholders either through dividends or share buybacks, as well as pledging to cut management fees. The trust's decision came after a review initiated in the wake of shareholders voting down the activist investor's requests to make changes to its board and lead a strategic review of the business.
According to a statement published on Wednesday by Sherborne Investors (Guernsey) B Ltd, a vehicle listed on the London Stock Exchange, Sherborne has renewed a proposal made last July to appoint Ian Brindle, Edward Bramson and a new independent director to the private equity investment trust's board.
"On 20 February 2015 Sherborne Investors sent a letter to Electra's chairman proposing a resumption of discussions about board representation and participation in an expanded review of options to increase Electra's shareholder value," it said.
Sherborne Investors (Guernsey) B is a limited partner in SIGB LP, a Guernsey domiciled limited partnership, which is managed by Sherborne Investors Management (Guernsey) LLC. SIGB LP is linked to Sherborne Investors Management LP, which features Edward Bramson as partner and portfolio manager.
If discussions with Electra aren't successful, the statement said, Sherborne intends to call for another general meeting of shareholders to consider the latest round of proposals.
Separately, Sherborne Investors (Guernsey) B said it is to issue at least 100 million new shares to existing shareholders in a placing designed to raise up to GBP100 million. The placing shares represent at least 48.3% of the company's existing share capital in issue.
"The net proceeds of the placing will be used to repay the outstanding borrowings of SIGB LP, the entity through which the company holds its investment in Electra Private Equity PLC and, if appropriate, to make further investments in securities of the current selected target company," Sherborne Investors (Guernsey) B said in a statement.
Joint bookrunners HSBC Bank PLC and Numis Securities Ltd are conducting an accelerated bookbuild for Sherborne Investors (Guernsey) B.
Electra shares closed down 0.4% at 3,063 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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