LONDON (Alliance News) - Porta Communications PLC said Wednesday it agreed to transfer its entire stake in Capital Access Holdings Ltd to Industrial Lending 1, in return for the cancellation of its GBP1.0 million debt guarantee in respect of Capital Access.
Porta owns a 39.5% stake in Capital Access. As at June 30, the investment in Capital Access did not have any carrying value on Porta's balance sheet, having been fully written-down during 2017.
"As we continue to consolidate and transform our business and eliminate non-core assets, we have also looked to de-risk areas in which we have limited influence or control. Importantly, with this transaction, we have removed a potential GBP1 million liability from the group, while retaining the capability within the group to offer investor access services through our existing wholly-owned subsidiary Newgate," Porta Joint Chief Executive Officer Emma Kane said.
Porta Communications shares were trading down 12% at 1.10 pence each.