7th Mar 2014 16:35
LONDON (Alliance News) - Tau Capital PLC Friday said its portfolio has been hit, with Stopharm LLP's performance to be affected by the devaluation of the Kazkhstani Tenge and the value of its investment in Lucent Petroleum LLP been written down to nil.
In an investment update, Tau Capital also said the holding of 10 Oxus Gold PLC Convertible Unsecured Loan Notes 2010 have been sold for USD425,000, completing the sale of the public equity portfolio.
It said it has USD8.2 million in cash, with none of it held in Tenge.
Details of a fourth tender offer will be announced as soon as the board has completed a review of the cash that they believe will need to be retained in order to conclude the sale of all assets and the orderly winding up of the company.
The estimated value of Stopharm LLP at 31 December 2013 is USD13.4 million. Subject to audit confirmation, this is the value that will be included in the financial statements for the year ended 31 December 2013. This is an impairment of USD8.1 million on the current carrying value of USD21.5 million.
"On February 11 the Tenge was subject to a devaluation of 19% which will have an inevitable impact on the performance of Stopharm LLP during 2014. Forecasts of the likely effect of the devaluation show a worse case valuation for 2014 of USD4.3 million; however, the forecasts also indicate that there will be the possibility of meaningful recovery from the effects of the devaluation in 2015," the company said in a statement.
Tau said negotiations by the parties holding 60% of the equity of Stopharm LLP are continuing but it isn't a party to the discussions over the pricing of any sale of those shares.
It has also written down its investment in Lucent Petroleum LLP to nil after advice from its investment advisor.
"Subject to audit confirmation this is the value that will be included in the financial statements for the year ended December 31 2013 and represents a further impairment of USD3.75 million from the current carrying value," the statement said.
In a January 17 investment update, TAU said it was likely that further impairments will be made, with Lucent being reduced to zero and a significant reduction in the value of Stopharm.
By Samuel Agini; [email protected]; @samuelagini
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