31 Jul 2012 10:05
TERRA CAPITAL PLC
31 JULY 2012
Announcement of the Net Asset Value and Investment of the Company's Portfolio
At the Extraordinary General Meeting of the Company held on May 24, 2012, the shareholders approved the appointment of Terra Partners Asset Management ("TPAM") as its Investment Manager (the "Investment Manger"). Since that date TPAM and the board have been negotiating to open a global custody account and numerous brokerage accounts for the Company around the world.
As of the date of this announcement, the Investment Manager has succeeded in investing about 1% of the portfolio due to a number of reasons and the remainder of the portfolio remains in cash, in USD. First, the contracts referred to above are quite detailed, involve substantial rights and obligations of the parties, need to be individually negotiated and some require review by legal counsel in addition to obtaining and providing substantial legal and regulatory documentation, they take some time to open. The board believes that they should become operative in the near future. In the meantime, the Company had some brokerage accounts previously opened with London brokers and has already begun to invest the portfolio. Second, there are companies and funds that sell at very attractive ratios but their shares need to be purchased slowly and on a daily basis in order to build up a reasonable position without affecting their prices. It is expected, depending on the volumes of such companies in August and the ability to open accounts in frontier markets that have unusually stringent and lengthy procedures for account opening, that the Company can be approximately 10% invested within 2 months.
In the meantime, the Board is pleased to announce that as of June 30, 2012 the NAV per share of the Company was $0.877. The Company will announce its NAV per share on a monthly basis from now on within the first week of every subsequent month.
Since none of the positions in the Company's portfolio is substantial enough to report and the Investment Manager is in the process of making cautious purchases, the Board prefers not to disclose their names at this time.
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Enquiries
For more information, please visit www.terracapital.com or contact:
Galileo Fund Services Limited (Administrator)
Ian Dungate
+44 1624 692600
Matrix Corporate Capital LLP (Nominated adviser and corporate broker)
Paul Fincham or Jonathan Becher
+44 20 3206 7000
Terra Capital plc.
Ian Dungate, Director
+44 1624 692600