LONDON (Alliance News) - GCP Sovereign Infrastructure Debt Ltd Wednesday said its board proposes to wind up the company and cancel trading on the Specialist Fund Market of the London Stock Exchange, following a strategic review.
The review was carried out by GCP's financial adviser, Cenkos Securities PLC, and its investment adviser Gravis Capital Partners LLP, in consultation with shareholders represent 92% of voting rights.
Last week, the UK infrastructure debt-focused investment company said negotiations with infrastructure borrowers in the Middle East have taken longer than anticipated, due primarily to the relative lack of familiarity of the borrowers or their advisers with capital structures that include subordinated debt tranches.
GCP said that while it has reached substantive agreement with borrowers regarding transactions worth USD100 million, a due diligence process highlighted risks which it believes would take such transactions outside the scope of its investment policy. GCP said this could also impact its ability to deliver its stated dividend target over the long term.
The company said it believes there is considerable uncertainty as to these, or any transactions, being completed in the foreseeable future.
GCP said Wednesday that, subject to shareholder approval, Gravis Capital Partners will make a cash contribution to the company equal to the sum of the costs incurred at its initial public offering and the net ongoing running costs of the company since its IPO.
GCP Infrastructure shares were quoted down 1.5% at 0.960 pence Wednesday afternoon.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com;
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