LONDON (Alliance News) - Activist investor Crystal Amber Fund Ltd on Tuesday said it made a GBP16.2 million profit when Ireland's national flag carrier airline Aer Lingus was acquired by International Consolidated Airlines Group and chocolate company Thorntons was taken over by Ferrero International SA.
The activist fund built its stakes in the companies before they were acquired, making GBP8.7 million on Aer Lingus and GBP7.5 million on Thorntons.
"The fund has already redeployed that capital into promising new opportunities. We continue to engage with our investee companies with the confidence of our proven activist investment process," Chairman William Collins said in a statement.
Crystal Amber has taken stakes in residential property business Grainger PLC, aviation services and distribution company Dart Group PLC, and infrastructure business Balfour Beatty PLC. It has also built a stake in Coats Group PLC, formerly Guinness Peat Group.
Its net asset value per share increased by 4.6% in the year ended June 30. Its total return per share for the year was 5.0% when taking into account the 0.5p dividend paid in July 2014, against the 14.5% total return of the FTSE 250 and the 8.1% oft he FTSE Small Cap.
"Although economic conditions appear more favourable in the UK, wider concerns over the pace of global growth, especially in China, have seen a return to volatile markets over the summer," Collins said.
"However, the impact of sell-offs in the broader market will be moderated to an extent by the fund's hedging policy and the Fund?s outlook remains positive as it focuses on acting as a catalyst to release value from its investee companies," the chairman added.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Crystal Amber (CRS)
Balfour Beatty (BBY)
Grainger plc (GRI)
Coats (COA)