30th May 2014 08:07
LONDON (Alliance News) - Elephant Capital PLC Friday reported growth in its net asset value of the first six months of its financial year, while it detailed a share buyback as it looks to return capital to shareholders after selling Mahindra CIE Automotive Ltd.
In a statement, the India-focused private equity company said its net asset value per share increased to 34 pence from 33p in the six months ended February 28. This was due to a GBP600,000 gain in its listed investment portfolio, more than offsetting a GBP100,000 fall in the value of its unlisted investment portfolio, as well as expenses exceeding income by GBP300,000.
Elephant Capital holds its investments through two special purpose vehicles based in Mauritius in the Indian Ocean.
"Our strategy continues to be to return capital to shareholders following further realisations of the investment portfolio," Chairman Vikram Lall said in a statement. "We intend to dispose of our remaining portfolio as soon as possible without conducting a fire sale."
Having sold off its remaining stake in Mahindra for GBP740,000, Elephant Capital had previously said it wants to return capital to shareholders. It has now concluded that the most cost and tax efficient way of doing so is by buying back shares through the market. Elephant Capital will spend up to GBP1.0 million on buying shares, which it says is the amount of cash it has in excess of its working capital requirements.
While Elephant Capital is already permitted to buyback up to 15% of its shares in issue, it has now called for an extraordinary general meeting on June 20 in order to ask for the ability to buyback up to 15% of its share capital after the existing 15% is carried out.
Shares will be bought back at the lower of either 105% of the average middle market closing price of its shares over five business days before the purchase is made, or 24 pence, which represents 70% of Elephant Capital's net asset value at the end of February.
The buyback programme will begin on July 14.
Cantor Fitzgerald Europe is Elephant Capital's nominated adviser and broker.
Elephant Capital shares were untraded Friday. They were last quoted at 18.00 pence.
By Samuel Agini; [email protected]; @samuelagini
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