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LONDON (Alliance News) - Strategic Equity Capital PLC Monday reiterated that it intends to reinstate its cancelled tender offer for up to 4% of its issued share capital on "substantially" the same terms as initially intended, after receiving reassurances from investment manager GVO Investment Management Ltd.
Strategic Equity Capital terminated its April tender offer to shareholders at the start of May after the chief executive and chairman of its investment manager resigned. A circular relating to the tender is intended to be published within the next few weeks, Strategic Equity Capital said, with the costs of the cancelled tender offer to be met by the investment manager.
The company has now said it has been informed that the resignations were as a result of "differences of opinion" about the management structure of GVO Investment Management, and weren't connected to the day-to-day running of the company's portfolio.
Strategic Equity Capital said Monday it welcomed the fact that Stuart Widdowson and Jeff Harris remain committed to their roles as investment manager and assistant portfolio manager.
Meanwhile, Strategic Equity Capital said its net asset value increased by 9.0% in the three months ended March 31, exceeding the FTSE Smaller Companies ex Investment Trusts index which rose by 2.1% over the same period. As of March 31, net assets totalled GBP105.2 million. NAV per share was 176.6 pence.
Performance was driven by strong share price performances across its portfolio, coming in spite of more than 15% in average cash balances over the quarter, Strategic Equity Capital said.
"Underlying portfolio companies continued to trade well over the period, with
results and trading statements typically in line or ahead of estimates, and a
number of trading-driven upgrades. The few downgrades among portfolio companies
tended to be driven by foreign exchange, which is unsurprising given the
international nature of many investee companies," Strategic Equity Capital said in a statement.
Strategic Equity Capital shares were Monday quoted at 156.60 pence, down 0.4%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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