21st Nov 2019 19:13
(Alliance News) - EIH PLC on Thursday said the life of its Evolvence India Fund PCC has been extended to the end of October 2020 and will likely be extended further, and it is seeking AIM cancellation.
EIF's investment manager will not charge management fees during the extension period, although the fund is still expected to incur expenses from legal, administrative, accounting, and deal costs.
Indian private equity fund of funds holding company EIH said there is increased "uncertainty as to both the value of the remaining assets to be realised and the timing of distributions to shareholders."
Further, EIH's investment manager has indicated that some assets are subject to negotiations for sale at a discount to their carrying value at the company's June 30 interim results, when the company's unaudited fair value was reported at USD9.4 million.
EIH is intending to seek approval for AIM cancellation due to its lack of share liquidity and the cost of its AIM listing.
"The directors confirm that, following cancellation, it would continue with its stated objective to realise assets at the appropriate time and value, and to return the proceeds, less expenses, to EIH's shareholders, while at the same time managing the company's operating costs carefully," said EIH.
Shares in EIH closed untraded on Thursday at 0.10 pence.
By Anna Farley; [email protected]
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