18th Feb 2016 15:47
LONDON (Alliance News) - Dunedin Enterprise Investment Trust PLC said Thursday it had sold its largest investment, a stake in courier company CitySprint (Uk) Ltd, for GBP26.1 million, and announced plans to conduct a managed wind down.
The private equity investment trust said GBP7.3 million of the total proceeds would be rolled over into a new CitySprint venture in partnership with private equity firm LDC for an interest of 5.0% in the new company. Dunedin said this would mean net cash proceeds from the deal would be GBP18.8 million.
Dunedin also said it had reviewed its investment strategy and had concluded, following consultation with major shareholders, that it would be in the interests of shareholders as a whole to conduct a managed wind down of Dunedin. The board will be seeking shareholder approval for its new strategy at its annual general meeting in May 2016.
Dunedin said it would give further detail on the publication of its annual results on March 18. If proposals are approved, Dunedin said it would continue to meet its current commitments, but no new commitments will be made. The Dunedin Buyout Fund III LP still has almost two years left in its investment period.
Shares in Dunedin were up 11% at 325.00 pence on Thursday afternoon.
By Hannah Boland; [email protected]; @Hannaheboland
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