Elec­tra takes down ‘for sale’ sign

The news is a blow to ac­tivist in­vestor Ed­ward Bram­son

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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)

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