5 Jan 2017 07:00
EIH PLC ("EIH" or the "Company")
Update on EIH's investment in Evolvence India Fund PCC ("EIF")
As at 30 June 2016 the Company's largest investment was US$20.1m invested in EIF (capital called of US$45.1m, less refund of capital contributions of US$25.0m), equivalent to 31.2 cents per share. At that reporting date the Fair Value (unaudited) of the Company's investment in EIF was US$20.6m, equivalent to 31.9 cents per share, representing a 1.03 x multiple over cost.
In order to maximize the value of the unrealized portfolio and to execute orderly exits, EIF's Investment Manager has extended the life of the fund until 31 October 2019.During the extension period the management fees will be reduced by 60% from the previous level and are capped at a fixed annual amount. The Company pays certain annual management fees and expenses to EIF in respect of its commitments to that fund. While these costs are embedded in the capital account of EIF and do not appear in the profit or loss for the Company, the reduction in the management fees by 60% nonetheless represents a cost reduction for the Company.
The Directors have reviewed certain underlying financial information provided to us by EIF's Investment Manager and we remain confident that as EIF's underlying portfolio matures and further realisations are achieved, further cash distributions will be received.
For further information, please contact:
EIH PLC
Rhys Davies
Tel: +41 (0) 79 620 0215
Nplus1 Singer Advisory LLP (Nominated Adviser)
James Maxwell / Alex Laughton-Scott
+44 (0)20 7496 3000