20th Aug 2019 12:37
(Alliance News) - Sherborne Investors (Guernsey) B Ltd on Tuesday reported a slight rise in net asset value over the first half but Sherborne Investors (Guernsey) C Ltd saw a sharp fall in NAV.
The funds each were set up with the specific policy of investing in one company, decided by investment manager Sherborne Investors Management LP, the investment vehicle of activist investor Edward Bramson.
Sherborne B was set up to acquire an interest in UK trust Electra Private Equity PLC, whereas Sherborne C holds Bramson's interest in FTSE 100-listed lender Barclays PLC. Both stakes have been used to agitate for change, more successfully at Electra so far.
However, in July, Bramson left the Electra's board. He was the company's chief executive during 2016 and 2017 but decided to stand down from his board position due to his commitments elsewhere, Electra said. He had served as a company director since 2015.
He was replaced by Sherborne partner Stephen Welker.
Sherborne B holds a 30% interest in Electra. The investment trust is in the middle of a managed wind-down and will not be adding any new investments to its portfolio.
At June 30, Sherborne B's NAV per share stood at 9.83 pence compared to 11.40p at December 31, a 14% decline. Sherborne B's net assets decreased 14% to GBP30.9 million.
Sherborne B paid a 1.5p dividend during the period, following Electra's 54p per share distribution.
The company's C share NAV increased marginally over the same period, rising to 67.13p from 66.96p. Sherborne C's net assets at the end of the first half were slightly higher too, ended June 30 at GBP469.9 million compared to GBP468.7 million six months earlier.
Sherbroner C holds a 5.5% interest in Barclays.
In May, Barclays' shareholders voted against adding Bramson to the bank's board, having previously been rebuffed in December.
"The investment manager has advised the board that it believes that addressing the issues it has discussed with Barclays' board could increase Barclays' financial strength and its long-term competitive position, leading to an increase in shareholder value in line with the investment manager's customary return objectives. The investment manager's present intention is to continue its dialogue with Barclays for as long as it appears to be appropriate to do so," Sherborne B said.
At August 16, Sherborne B's NAV per share slipped to 64.4p on account of Barclays share price has declining compared to the end of the reporting period.
Shares in Sherborne B were untraded in London on Tuesday having last closed at 8.65p. Sherborne C was down 2.0% at 49.00p.
Related Shares:
BarclaysELTA.LSherborne Inv C