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LONDON (Alliance News) - Alternative investment manager Argo Group Ltd Friday said certain of its managed funds have reached an agreement for the sale of a significant investment they hold in Indonesia, which means it will consider resuming annual dividend payments or a share buyback.
The funds have received part of the sale consideration already, with the balance due over the next two weeks, Argo said.
Argo said the disposal will improve the liquidity of the funds and create an opportunity for further transactions with the same counterparty, which could in the future mitigate the impact of the book value losses the funds will incur as a result of the disposal.
It added that the sale will allow the funds to pay all outstanding management fees owed to Argo, which stand at USD5.8 million as at September 30, but exclude the fees due from the Argo Real Estate Opportunities Fund.
"Once the full sale consideration has been received by the funds, the board will consider a resumption of annual dividend payments and or a potential return of capital to shareholders via a share buyback subject to a review of AGL's future strategy and working capital needs," Argo said in a statement.
Shares in Argo were trading up 3.3% at 7.75 pence early Friday following the announcement.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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