LONDON (Alliance News) - Alliance Trust PLC on Wednesday said it has been making progress on implementing a package of changes revealed in October that followed a bruising battle with activist investors Elliott Advisors.
Nearly three weeks have gone by since Alliance Trust said Chairman Karin Forseke would be leaving the group. That followed the removal of Katherine Garrett-Cox, its former chief executive, from the board, although she will continue to lead the group's investment arm, Alliance Trust Investments.
Based in Dundee, Scotland, Alliance Trust has promised to improve performance and governance following a campaign by Elliott, which has built a 15.0% stake in the London-listed company.
On Wednesday, Alliance Trust outlined a number of areas in which it has made progress, such as halving exposure to fixed income to GBP74.0 million on the way to a full exit. In addition, the group has sold its last remaining commercial property for GBP5.6 million, generating a profit on the holding value of 15.6%, and initiated the sale of its mineral rights portfolio.
Also within the progress update, Alliance Trust said it is on track for combined savings from the investment business of at least GBP6.0 million for 2016. In addition, share buybacks have helped to narrow the discount at which its shares trade to net asset value to an average of 10.5%, compared to 12.6% for the first nine months of 2015. The group is targeting a single-figure discount.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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