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Electra launches strategic review after Bramson feud

The private equity trust has launched a strategic review after last year's attack from activist investor Edward Bramson.

Electra launches strategic review after Bramson feud

Electra Private Equity (ELTA ) has launched a strategic review after last year's attack from activist investor Edward Bramson (pictured).

The review, expected to complete in the autumn, will look at how to maximise the investment trust's long-term shareholder value and examine the its investment strategy, policy and structure.   

The current investment policy in place was approved in October 2006 and until completion of the review, the trust will operate as usual.

Kate Barker, interim chairman at Electra, told the market: 'Electra's strategy and investment policy has remained substantially unchanged for almost 10 years.

'Together with the outcome of the general meeting on 5 November 2015, which indicated that a significant proportion of shareholders wish a review to take place, this has led the board to conclude now is the right time to undertake one.

'We will look at whether the current strategy remains best suited to maximise shareholder value in the future. We remain open to further discussions with all shareholders.'

Alex Fortescue, managing partner of Electra Partners, said the company had invested £1.2 billion over the last five years and generated portfolio returns of 23% a year.

'These excellent returns have been generated by pursuing Electra’s strategy of investing across the private equity capital structure and focusing on substantial operational improvement and transformation in its portfolio companies,' he said.

'Electra Partners has a strong pipeline of new opportunities, a particularly exciting portfolio and will continue to execute this proven strategy for all its investors over the coming months and years.'

In November, the company's chairman Roger Yates resigned after Bramson's investment vehicle Sherborne Investors secured two seats on the trust's board, following a drawn-out war of words.

At the time, Sherborne said in a statement: 'The new directors are grateful for the support shown by shareholders and look forward to working together with their board colleagues in undertaking a strategic review to consider all options in order to maximise long-term value for all shareholders.'

Analysts at Numis said the launch of the strategic review was 'not unexpected'. 'We had thought that results of a review may be earlier than the autumn, but the timing is perhaps unsurprising given the significant changes to the board in recent months and that a new chairman is still to be appointed,' they added.

Shares in Electra rose 28p to £34.46 on the news.

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Investment Trust Watch: the hidden gem in UK Income

by Gavin Lumsden on Oct 21, 2016 at 17:18

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