LONDON (Alliance News) - Frontier market investor Terra Capital PLC said Thursday it is facing liquidation after a January 2015 proposal is going to be upheld by shareholders regarding the return of their investments.
Terra Capital aims instead to go about an "orderly realisation of investments", after its shareholders told the company they would like to take advantage of a proposal whereby they are allowed to "realise all or part of their investment in the company at a price equal to the then prevailing net asset value".
The agreement made in 2015 was part of restructuring proposals which said shareholders would be offered an opportunity in June 2018 to realise all or part of their investment.
It was envisaged that if the number of shareholders who availed themselves of this opportunity was such a level that the company was no long a viable proposition, then it would placed into voluntary liquidation. The company spoke to a group of shareholders who hold in excess of 60% of the issued share capital, and it was made clear that this was the case.
However, the company believes an "orderly realisation of investments" is preferable to immediate liquidation as it is likely to "achieve greater returns to shareholders" and so will seek approval for this from shareholders a general meeting on a date to be set.
Shares in Terra Capital closed up 0.1% at 1.006 pence each on Thursday.