LONDON (Alliance News) - Chenavari Capital Solutions Ltd on Tuesday said it intends to wind down and return funds to shareholders after it extended its investment period for a further year in 2016.
The firm, which does deals with banks looking to cut capital-intensive risk assets to meet tougher regulations since the financial crisis, had planned to stop making new investments at the end of 2015 but shareholders, at a meeting in December 2015, approved a plan to extend its investment period for another year.
On Tuesday, Chenavari said it now intends to stop making any further investments from January 1 and will start realising its investments and returning money to shareholders.
The company said the precise method of returning funds to shareholders will be determined by market factors and will be at the board's discretion, but Chenavari said it may include capital distributions, share buybacks and redemptions.
It expects the first return of cash to take place before the end of April 2017.
Shares in Chenavari were up 1.9% to 86.23 pence on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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