Electra plays down Vasanta exposure

Following week-end press comment about its investment in Vasanta, private equity investment firm Electra has reiterated that the value of its investment in the troubled office supplies group had been written down to £1.5m in its half-year results.“Electra confirms that as at 31 March 2009 this investment was valued at £1.5m and not £28 million as reported in the press,” the company said in a statement.The net asset value per share of Electra as at the end of March was £15.12p, of which the Vasanta investment represented just 4p.Week-end press reports suggested that Electra is proposing to inject more capital into Vasanta, which is in danger of collapsing after the removal of credit insurance led to a substantial rise in the company’s debt levels. The Sheffield-based company said on Sunday, 5 July that it was involved in discussions that are “likely to involve the introduction of new finance from a new institutional shareholder,” the Daily Telegraph reported.