LONDON (Alliance News) - Gresham House PLC Friday said that it was lowering the targeted funds to be raised in its placing to between GBP10 million and GBP13 million, which will dilute existing shareholders but will not affect its new management team's strategy.
Gresham is moving towards becoming an asset manager through a series of proposals, along with moving its listing from AIM to the London Stock Exchange's main market. The proposals replace its previous plan to liquidate its assets and distribute the proceeds to shareholders. Gresham House had invested in commercial property, as well as corporate bonds.
When the proposals were announced in June, the company said it planned to raise a minimum of GBP15.0 million in the placing.
The company still expects to set the placing price at the "at the net asset value per ordinary share as at 30 June 2014 as adjusted to reflect any movement in the share price of SpaceandPeople PLC (being the only material quoted investment in the group?s portfolio) between 30 June 2014 and the latest practicable date prior to finalisation of the investor documentation, discounted by 11.25%."
The company posted a net asset value per share of 331.7 pence at the end of June 2014, down from 378.5 pence at the end of December 2013.
Gresham said Friday that it expects to complete the fund-raising shortly, and will announce the detailed terms and convene a general meeting for shareholders to approve resolutions necessary to undertake its proposals.
Shares in Gresham House are untraded Friday. It last traded at 261.00 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
