17th Mar 2015 15:56
LONDON (Alliance News) - Elephant Capital PLC Tuesday said it has sold its remaining stake in Nitco Ltd, which has resulted in Elephant making a GBP890,000 net loss on the disposal, and the company also has suspended its share buy-back programme after purchasing 5.0 million shares.
Elephant, a private equity business, acquired its holding in Nitco in 2009 for a total of GBP1.4 million. It previously sold 100,000 shares in Nitco for GBP20,000, and Tuesday said it has sold the remaining 1.8 million shares in Nitco through a series of market transactions for an aggregate consideration of GBP420,000.
Elephant no longer holds a stake in Nitco, a premium tile manufacturer based in India.
With the disposal of the company's investment in Nitco, Elephant will realise a net loss of GBP890,000. Elephant said it had received GBP140,000 in dividends from Nitco during the life of its investment.
In addition, Elephant said the share buy-back programme announced in February, in which it said it would use cash deemed surplus to requirements to buy up to 25% of its existing shares, has now been temporarily suspended.
The company said it bought back 5.0 million shares on March 9 at 24.5 pence, which has "fully utilised" the company's cash resources, and therefore Elephant has temporarily suspended the programme. Elephant has 15.1 million shares in issue, so 33% of its shares were bought back.
Elephant Capital shares were untraded Tuesday at 20.00 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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