27th Feb 2020 13:02
(Alliance News) - Craven House Capital PLC on Thursday reported its net asset value fell by almost a third in the first half of its financial year.
At November 30, its net asset value per share came in at USD6.70, down by 32% from USD9.89 in May.
Shares in the company were 6.0% lower at USD3.90 each in London on Thursday afternoon.
Gross asset value fell 25% to USD20.5 million from USD27.4 million.
Craven House said: "This change was almost solely the result of a reduction in mark-to-market prices of liquid securities (shares in DLC Holdings Corp) which we intend to hold for an extended period of time.
"The valuation of DLC has decreased as a result in a drop in the mark-to-market valuation of the shares on the November 30 versus May 31."
The South America-focused agricultural investment company's share price at the end of December was down by more than half to CAD0.12 about GBP0.07, from CAD0.27 in May.
"There has been no deterioration in the valuation of the underlying holdings of DLC and management believes that the end of period share price represents a significant discount to the orderly liquidation value of DLC. Management also believes that the political and economic situation in South America will likely provide for further acquisition opportunities as distressed sellers are forced to liquidate good properties," Craven House added.
By Eric Cunha; [email protected]
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