Electra takes down ‘for sale’ sign
The news is a blow to activist investor Edward Bramson
PRIVATE EQUITY investment trust Electra Private Equity (ELTA) is no longer up for sale after failing to attract any credible suitors during a formal sales process.
The development denies a clean exit for activist investor Edward Bramson who first targeted Electra in 2013 through his Sherborne Investors vehicle, and subsequently led the disposal of the bulk of the trust’s assets and the return of the best part of £2bn in cash to investors.
Remaining assets in the portfolio include restaurant chain TGI Fridays and shoe specialist Hotter.
Electra, which trades at a 17% discount to net asset value, says discussions are continuing on the sale of individual assets and adds it will announce the result of an ongoing strategic review before the end of October.
Numis comments: ‘Hotter and TGI Fridays operate in competitive retail markets, whilst the company does not have full control over the exit strategy for the remaining investments. It remains to be seen whether a sale of the remaining assets can be achieved within the next few months, and at what level.’ (TS)