LONDON (Alliance News) - Electra Private Equity PLC on Thursday said it has agreed the sale of its Photobox and Knight Square interests to funds advised by Lexington Partners LP.
The investment trust said it expects to receive GBP98 million in cash from the Photobox sale and GBP21 million from Knight Square. A further GBP13 million will also be given to Electra as loan repayment in relation to Knight Square.
The Photobox sale is due to take place in October, with Knight Square following in the first quarter of 2019.
Provided the Photobox sale goes as planned, Electra intends to distribute excess cash as an initial 365 pence per share special dividend in December, with a subsequent special 54p per share dividend to be paid once the Knight square disposal is complete.
Electra's remaining corporate investments, which have an approximate value of GBP403 million based on their adjusted March 31 carrying value, are to be sold as part of a slow wind-down.
"Given the size of the portfolio and the structural inefficiency of the listed private equity model that is accentuated by making new investments, it is now in shareholders' best interests to announce the controlled realisation of the remaining portfolio over an appropriate period," said Electra Chairman Neil Johnson.
"The remaining assets have opportunity for value creation from current levels and the board will actively work with portfolio company management to optimise realisations over time," he added.
Under this wind-down process, Electra will remain listed on the London stock exchange and, pending "further material disposals" will pay an annual dividend of GBP10 million in total. The company will now seek shareholder approval for this plan.
Shares in Electra were up 3.5% at 906.86p on Thursday.