28th Feb 2014 15:46
LONDON (Alliance News) - Electra Private Equity PLC shares rose 10% Friday after Sherborne Investors, the activist turnaround investment firm, took a stake of over 10% in Electra through its Guernsey registered investment vehicle.
A filing to the London Stock Exchange showed that the Sherborne Guernsey vehicle had taken a 10.24% interest in Electra Private Equity, which specializes in investing in private equity. The interest is made up of 1,897,266 ordinary shares and 1,721,848 non-voting total return swaps.
In a separate statement, Sherborne Investors (Guernsey) B Ltd said Sherborne Investors Management, its investment manager, had told it that it "it intends to monitor the risks and rewards of continued investment in Electra, compared to other investment opportunities available to the partnership, and, accordingly, may dispose of all or part of such interests or purchase additional interests in Electra at any time."
Sherborne Investors is a turnaround specialist. It was founded by Edward Bramson. In recent months, it took a stake in 3i PLC, which it then sold, and also took a stake in F&C Asset Management PLC.
"We invest in companies which we believe have the potential to increase their profits substantially but which have underperformed for an extended period of time," it says on its website.
One of its most high profile turnarounds so far was that of Spirent Communications PLC back in 2006. Bramson's group ousted the company's executive team and took control of the business, turning it around and then exiting the investment at a profit a few years later.
Electra Private Equity shares were up 10% at 2,750 pence Friday, the biggest gain on the FTSE 250. Sherborne Investors (Guernsey) B Ltd last traded at 99.5 pence.
By Steve McGrath; [email protected]; @SteveMcGrath1
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