26th Feb 2015 08:57
LONDON (Alliance News) - Electra Private Equity PLC said Thursday it has noted activist investor Sherborne Investors's statements late Wednesday renewing its efforts to influence matters at Electra, and confirmed its chairman has received a letter requesting a meeting.
Electra Chairman Roger Yates has agreed to a meeting with Edward Bramson of Sherborne, although a date for this meeting has yet to be set.
On Wednesday, Sherborne Investors (Guernsey) B Ltd, a vehicle listed on the London Stock Exchange, said that Sherborne has renewed a proposal made last July to appoint Ian Brindle, Bramson and a new independent director to the private equity investment trust's board.
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.
Separately, Sherborne Investors (Guernsey) B on Thursday raised GBP100 million through the placing of 107.0 million shares at 93.5 pence each, representing a 34.1% interest in its issued share capital following the issue of the placing shares. Shares in Sherborne Investors (Guernsey) B are untraded Thursday morning, and last closed at 93.90 pence.
Sherborne will use the proceeds to repay outstanding borrowings to SIGB LP, the entity which holds its investment in Electra, and it said "if appropriate" to make further investments in Electra.
Shares in Electra are trading up 2.0% at 3,123.24 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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