(Alliance News) - Crystal Amber Fund Ltd on Wednesday said it plans a "substantial" return of capital after it receives funds from the buyout of investee Hurricane Energy PLC by Prax Exploration & Production PLC.
A month ago, Hurricane Energy said it agreed to be bought by Prax in a deal that valued it at around GBP249.0 million.
Crystal Amber, a London-listed activist investor, said it will receive GBP72 million, or 86.5 pence per Crystal Amber share, from the buyout of Hurricane.
Crystal expects the scheme, which requires approval from Hurricane shareholders and from the North Sea Transition Authority, to become effective in the second quarter of 2023.
A court meeting to potentially approve the buyout is set for May 4.
Crystal Amber said: "The fund intents to consult with major shareholders regarding the treatment of the disposal proceeds. The fund intends to announce a substantial return of capital, as soon as
practical, with a view to returning capital immediately after the receipt of the initial consideration. As previously announced, the fund intends to retain sufficient liquidity out of the initial consideration to continue to fund growth at GI Dynamics and protect the value of its holding in De La Rue [PLC]."
Meanwhile, Crystal Amber reported a net asset value of 117.4 pence per share for March 31, down 4.7% from 122.9p at February 28.
Crystal Amber Fund shares were 1.2% higher at 79.40 pence each in London on Wednesday morning, while Hurricane Energy shares were 0.2% lower at 7.41p each.
By Tom Budszus, Alliance News reporter
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Crystal Amber (CRS)
De La Rue (DLAR)