We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Terra Capital | LSE:TCA | London | Ordinary Share | IM00BFMXG143 | ORD USD0.10 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMTCA
RNS Number : 2021C
Terra Capital PLC
27 September 2018
Terra Capital plc/ Market: AIM/ Epic: TCA/ Sector: Equity Investment Instruments
27 September 2018
Terra Capital Plc ('Terra' or 'the Fund')
Interim Results for the Year Ended 30 June 2018
Terra Capital Plc, the AIM quoted investment company announces interim results for the six month period ended 30 June 2018.
On 10 July 2018 at an Extraordinary General Meeting, Shareholders approved a change in the Company's investing policy.
The new investing policy states that "the Company shall cease to make any new investments and shall realise its portfolio of investments in an orderly manner and return the net proceeds to Shareholders as soon as practicable".
As a result the Fund is now operating as a realisation company.
For more information, please visit www.terracapitalplc.com or contact:
Galileo Fund Services Limited (Administrator)
Frazer Pickering
+44 1624 692600
Panmure Gordon (UK) Limited (Nominated adviser and corporate broker)
Jonathan Becher
+44 20 7886 2500
Terra Capital plc.
Ian Dungate, Director
+44 1624 692600
Chairman's Statement
On behalf of the Board of Directors (the "Board") I am pleased to present the interim results for Terra Capital plc (Terra or the "Company") for the six months ended 30 June 2018.
The first half of 2018 has been an active one for the Company culminating in our shareholders resolving to adopt of a new investment policy whereby "the Company shall cease to make any new investments and shall realise its portfolio of investments in an orderly manner and return the net proceeds to Shareholders as soon as practicable". This new investment policy was approved by Shareholders shortly after the period end.
A tender for the re-purchase of up to ten percent. of the shares in issue (excluding shares held in treasury) was carried out in March in accordance with the discount control policy implemented in January 2016 as a result of the discount to Net Asset Value per Ordinary Share at which the shares traded during the last nine months of 2017. This tender retuned a total of $6.8 million to shareholders.
In January 2015, as part of the recommended restructuring proposals, Shareholders approved proposals whereby the Board was released from the obligation to propose a continuation vote in 2017. Instead the Board agreed to offer Shareholders, in June 2018, an opportunity to realise all or part of their investment in the Company at a price equal to the then prevailing net asset value (less costs associated with the opportunity) (the "Realisation Opportunity"). Additionally, it was envisaged that if the number of Shareholders who availed themselves of the Realisation Opportunity was such that the Company was no longer a viable proposition the Realisation Opportunity would be abandoned and the Company would be placed into voluntary liquidation.
As announced on 19 April 2018, the Board consulted with Shareholders who between them hold in excess of 60 per cent. of the issued share capital of the Company, from which it became clear that such Shareholders would accept the Realisation Opportunity and as such the Company would no longer be a viable proposition.
In the light of the above consultation the Board determined to dispense with the Realisation Opportunity, and instead, subject to approval by Shareholders, adopt the New Investment Policy which involves the Company ceasing all new investments and seeking to realise, in an orderly fashion, the Company's portfolio of investments and return the net proceeds generated to Shareholders as soon as is practicable. The Board, having consulted with its advisers, believed an orderly realisation of the portfolio of investments was preferable to an immediate liquidation as it was likely to achieve greater returns to Shareholders.
In order to give the Board maximum flexibility in terms of the manner in which the net proceeds of the realisation of the Company's portfolio of investments is returned to Shareholders, it was also proposed to Re-register the Company under the 2006 Act. As part of this process the Company would adopt the New Articles which, in addition to reflecting the fact that the Company would be re-registered under the 2006 Act, would include a mechanism to allow the Company to redeem compulsorily Ordinary Shares as a means of returning the proceeds of realisations to Shareholders.
These proposals were approved by shareholders after the period end on 10 July 2018 along with the New Investment Policy noted above.
Following the shareholder approval, received on 10 July 2018, your Board implemented the first of these compulsory redemptions returning a further $36.8 million to shareholders representing 60% of the Net Asset Value at that time.
Our Investment Manager continues to realise the portfolio in an orderly manner and a second compulsory partial redemption of 50% of the remaining shares in issue was announced on 26 September 2018, which will return a further $11.8 million to Shareholders in October 2018.
Sincerely yours,
Dirk Van den Broeck
Chairman
27 September 2018
Report of the Investment Manager
Given the Company's obligation to provide a realisation opportunity in June 2018 or, failing this, in preparation for the adoption of the New Investing Policy, the Company's investment level has been reduced during the first six months of 2018 as an excess of cash was established.
The Company's investment level has been reduced from 81.7% at 31 December 2017 to 43.3% at 30 June 2018.
The Investment Manager continues to realise the Company's investments in an orderly manner in furtherance of the New Investing Policy adopted subsequent to the year end.
Respectfully Submitted by:
Terra Partners Asset Management Limited
Suite 8/5A, Portomaso Tower, Portomaso Avenue,
St. Julian's STJ 4011 Malta
Regulated by the Malta Financial Services Authority, Reg. No. C 56353
Unaudited consolidated income statement
Hot Features
Premium
Note For the period from For the period from
1 January 2018 to 1 January 2017 to
30 June 2018 30 June 2017
US$'000 US$'000
------------------------------------------------------------------- ----- -------------------- --------------------
Income
Net changes in fair value on financial assets at fair value
through profit or loss (9,879) (1,151)
Realised gain on sale of financial assets at fair value through
profit or loss 8,047 4,192
Interest income on cash balances 31 6
Dividend income on quoted equity investments 1,322 2,405
Total net (loss)/income (479) 5,452
------------------------------------------------------------------- ----- -------------------- --------------------
Manager's fees 6 (418) (409)
Incentive fees 6 - (544)
Audit and professional fees (45) (70)
Provisions 10 (1,164) -
Other expenses (292) (263)
Administrative and other expenses (1,919) (1,286)
------------------------------------------------------------------- ----- -------------------- --------------------
(Loss)/profit before tax (2,398) 4,166
------------------------------------------------------------------- ----- -------------------- --------------------
Taxation 13 (28) (174)
(Loss)/profit for the period (2,426) 3,992
Basic and diluted (loss)/earnings per share (cents per share) for
the period 11 (4.17) 6.26
------------------------------------------------------------------- ----- -------------------- --------------------
Unaudited consolidated statement of comprehensive income
For the period from 1 January 2018 For the period from 1 January 2017
to 30 June 2018 to 30 June 2017
US$'000 US$'000
-------------------------------------- ------------------------------------ -------------------------------------
(Loss)/Profit for the period (2,426) 3,992
Other comprehensive income
Foreign exchange differences - -
Total comprehensive (loss)/profit for
the period (2,426) 3,992
--------------------------------------- ------------------------------------ -------------------------------------
Unaudited consolidated balance sheet
Note Unaudited Audited
At 30 June 2018 At 31 December 2017
US$'000 US$'000
------------------------------------------------------- ----- ----------------- ---------------------
Financial assets at fair value through profit or loss 8 27,279 57,549
Trade and other receivables 9 461 323
Cash and cash equivalents 35,310 14,127
Total current assets 63,050 71,999
------------------------------------------------------- ----- ----------------- ---------------------
Total assets 63,050 71,999
======================================================= ===== ================= =====================
Issued share capital 12 6,147 6,830
Retained earnings 48,349 57,598
Capital redemption reserve 6,853 6,170
Total equity 61,349 70,598
------------------------------------------------------- ----- ----------------- ---------------------
Total current liabilities
Taxation 13 323 545
Trade and other payables 15 1,378 856
Total current liabilities 1,701 1,401
------------------------------------------------------- ----- ----------------- ---------------------
Total liabilities 1,701 1,401
------------------------------------------------------- ----- ----------------- ---------------------
Total equity and liabilities 63,050 71,999
======================================================= ===== ================= =====================
Net Asset Value per share 5 1.11 1.15
------------------------------------------------------- ----- ----------------- ---------------------
Approved by the Board of Directors on 27 September 2018
Ian Dungate Dirk van den Broeck Director Director
Unaudited consolidated statement of changes in equity
For the six months ended 30 June 2018
Share capital Retained earnings Capital redemption reserve Total
US$'000 US$'000 US$'000 US$'000
------------------------------------------- -------------- ------------------ --------------------------- --------
Balance at 1 January 2018 6,830 57,598 6,170 70,598
------------------------------------------- -------------- ------------------ --------------------------- --------
Loss for the period - (2,426) - (2,426)
Other comprehensive income - - - -
Total comprehensive loss - (2,426) - (2,426)
------------------------------------------- -------------- ------------------ --------------------------- --------
Shares in treasury cancelled (683) 683 -
Shares subject to tender offer (6,823) - (6,823)
------------------------------------------- -------------- ------------------ --------------------------- --------
Total contributions by and distributions
to owners (683) (6,823) 683 (6,823)
------------------------------------------- -------------- ------------------ --------------------------- --------
Balance at 30 June 2018 6,147 48,349 6,853 61,349
------------------------------------------- -------------- ------------------ --------------------------- --------
For the six months ended 30 June 2017
Share capital Retained earnings Capital redemption reserve Total
US$'000 US$'000 US$'000 US$'000
------------------------------------------- -------------- ------------------ --------------------------- --------
Balance at 1 January 2017 7,726 56,377 5,274 69,377
------------------------------------------- -------------- ------------------ --------------------------- --------
Profit for the period - 3,992 - 3,992
Other comprehensive income
Total comprehensive profit - 3,992 - 3,992
------------------------------------------- -------------- ------------------ --------------------------- --------
Dividends paid
Shares in treasury cancelled (896) - 896 -
Shares subject to tender offer (6,693) - (6,693)
------------------------------------------- -------------- ------------------ --------------------------- --------
Total contributions by and distributions
to owners (896) (6,693) 896 (6,693)
------------------------------------------- -------------- ------------------ --------------------------- --------
Balance at 30 June 2017 6,830 53,676 6,170 66,676
------------------------------------------- -------------- ------------------ --------------------------- --------
Unaudited consolidated statement of cash flows
For the period from For the period from
1 January 2018 to 30 June 2018 1 January 2017 to
30 June 2017
US$'000 US$'000
---------------------------------------------------------- -------------------------------- --------------------
Operating activities
(Loss)/profit before tax (2,398) 4,166
Adjustments for:
Net changes in fair value on financial assets at fair 1,832 (3,041)
value through profit or loss
Finance income (31) (6)
Finance costs - -
Operating (loss)/gain before changes in working capital (597) 1,119
(Increase)/decrease in trade and other receivables (138) (243)
Increase/(decrease) in trade and other payables 522 50
384 (193)
Taxation paid (250) (174)
Net finance costs paid - -
Interest received 31 6
----------------------------------------------------------- -------------------------------- --------------------
Cash flows (used in)/generated from operating activities (432) 758
----------------------------------------------------------- -------------------------------- --------------------
Investing activities
Net purchase of financial assets - -
Net sale of financial assets 28,438 3,957
Funds held at Brokers - -
Cash flows used in investing activities 28,438 3,957
----------------------------------------------------------- -------------------------------- --------------------
Financing activities
Purchase of shares (6,823) (6,693) Cash flows used in financing activities (6,823) (6,693) ----------------------------------------------------------- -------------------------------- -------------------- Net increase/(decrease) in cash and cash equivalents 21,183 (1,978) Adjustment for foreign exchange - - Cash and cash equivalents at beginning of period 14,127 12,430 Cash and cash equivalents at end of period 35,310 10,452 ----------------------------------------------------------- -------------------------------- --------------------
Notes to the consolidated financial statements
1. The Company
Terra Capital plc (formerly named Speymill Macau Property Company plc) was incorporated and registered in the Isle of Man under the Isle of Man Companies Acts 1931 to 2004 on 31 October 2006 as a public company with registered number 118202C.
The interim consolidated financial statements of Terra Capital plc as at, and for, the six months ended 30 June 2018 comprise the Company and its subsidiaries (together referred to as the "Group").
The consolidated financial statements of the Group as at, and for, the year ended 31 December 2017 are available upon request from the Company's registered office at Millennium House, 46 Athol Street, Douglas, Isle of Man, IM1 1JB or at www.terracapitalplc.com.
The Company's investment objective to achieve capital appreciation while attempting to reduce risk primarily by applying a disciplined and diversified value investing philosophy in purchasing securities in Frontier markets for its portfolio was amended by Shareholder resolution subsequent to the period end on 10 July 2018 whereby, the Company shall cease to make any new investments and shall realise its portfolio of investments in an orderly manner and return the net proceeds to Shareholders as soon as practicable".
2 Statement of compliance and significant accounting policies
These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at, and for, the year ended 31 December 2017.
These condensed consolidated interim financial statements were approved by the Board of Directors on 25 September 2018.
The Group has one segment focusing on achieving capital appreciation while attempting to reduce risk primarily by applying a disciplined and diversified value investing philosophy. No additional disclosure is included in relation to segment reporting as the Group's activities are limited to one business segment.
The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at, and for, the year ended 31 December 2017.
The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2017.
3 Use of estimates and judgements
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
Certain investments are in illiquid/inactive markets and classified as Level 2 in the IFRS 7 fair value Hierarchy (see note 7).
4 Finance income and costs
Period ended Period ended
30 June 2018 30 June 2017
US$'000 US$'000
---------------------- -------------- --------------
Bank interest income 31 6
---------------------- -------------- --------------
Finance income 31 6
---------------------- -------------- --------------
Bank charges (5) (3)
---------------------- -------------- --------------
Finance costs (5) (3)
---------------------- -------------- --------------
Net finance income 26 3
---------------------- -------------- --------------
5 Net asset value per share
The net asset value per share as at 30 June 2018 is US$ 1.11 based on 55,322,381 ordinary shares in issue as at that date (excluding 6,146,931 shares held in treasury) (31 December 2017: US$1.09 based on 61,469,312 ordinary shares (excluding 6,829,924 shares held in treasury)).
6 Related party transactions
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.
Parties are considered to be related if one party has the ability to control the other party or to exercise significant influence over the party making financial or operational decisions.
Directors of the Company
Howard Golden and Filip Montfort are directors of the Manager. The Manager was appointed at the EGM held on 24 May 2012. Following the EGM, Mr Golden and Mr Yarden Mariuma resigned as directors of the Company and Mr Dirk van den Broeck was elected Chairman of the Board of Directors as an independent non-executive director and Mr Ian Dungate was elected as an independent non-executive director.
Filip Montfort is a director of the Investment Manager and remained as a Director of the Company following the above noted EGM until his resignation on 16 December 2015.
Mr Dungate is a director of the administrator.
Directors remuneration is disclosed in note 13.
The Investment Manager
Following the EGM held on 24 May 2012, the Company appointed the immediate predecessor to the current investment manager until the current investment manager, Terra Partners Asset Management, Limited ("TPAM") received its license in Malta and then the Investment Management Contract was assigned to TPAM to be the Group's investment manager (the "Manager").
Term and termination
The Investment Management Agreement may be terminated by either party giving to the other not less than 12 months' notice expiring on, or at any time after, the third anniversary of the commencement date of the agreement or otherwise, in circumstances, inter alia, where one of the parties has a receiver appointed over its assets or if an order is made or an effective resolution passed for the winding-up of one of the parties.
Management fee
The Manager shall be entitled to receive a management fee equal to 1.25 per cent. per annum of the aggregate Net Asset Value of the Company during the relevant fee payment period, calculated on the first day of each month, accrued on a daily basis and payable monthly in arrears (or pro rata for lesser periods).
Performance fee
The Manager is also entitled to receive a performance fee equal to 12 per cent. of the increase (if any) in the Net Asset Value per Share (with dividends and other distributions added back and ignoring any accrued performance fee) as at each semi-annual performance fee calculation period above the Net Asset Value as at the commencement of each such semi-annual performance fee calculation period, provided that any performance fee shall be payable only to the extent that the Net Asset Value of the Share exceeds the Net Asset Value immediately following the settlement of the Tender Offer or, if a performance fee has been paid, the Net Asset Value per Share when a performance fee was last paid. The performance fee shall be calculated on 30 June and 31 December in each year and paid following such calculation. The performance fee for the period ending 30 June 2018 was US$ Nil (30 June 2017: US$ 544,375).
Expenses
In addition, the Company shall be responsible for the payment of certain out-of-pocket expenses reasonably incurred by the Manager in the proper performance of the Investment Management Agreement up to a maximum of US$75,000 per annum and any other out-of-pocket expenses in excess of this maximum shall be borne by the Investment Manager.
The Administrator
The Administrator shall be paid by the Company a fixed fee of US$100,000 per annum, payable quarterly in arrears.
For the preparation of the financial statements the Administrator shall be paid by the Company US$3,000 per set.
In the event that the Administrator provides secretarial services to the Company, the Administrator shall be paid an annual fee of US$8,000. The Administrator shall be entitled to additional fees for such general secretarial services based on time and charges where the number of board meetings or general meetings exceeds four per annum. The Administrator shall be entitled to an attendance fee of US$750 per day or part thereof where the Administrator attends a board meeting or general meeting which is not held in the Isle of Man.
7 Fair value hierarchy
IFRS 7 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:
-- Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
-- Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).
-- Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).
US$25,172,000 (31 December 2017: US$55,309,000) of the Company's investments are classed as level 1 investments and
US$2,107,000 (31 December 2017: US$2,240,000) of the Company's investments are classed as level 2 investments.
8 Financial assets at fair value through profit or loss
Group
30 June 2018: Financial assets at fair value through profit or loss (all quoted equity securities):
Security name Number US$'000
--------------------------------------- ---- -------------- --------------
Speedy EAD-Sofia 47,518 1,132
Bank of Bahrain and Kuwait 700,000 827
Gulf Hotel Group 704,700 976
BB Votorantim (B65JNX7) 54,300 704
FDO S F Lima 2188023 578,259 343
Fi Projecto Agua Branca 1,800 148
Fii BM Edificio Galeria B8C2Zb5 39,200 404
Fii Torre Almirante B0B23L6 1,020 376
Fii Vila Olimpia Cor 34,000 762
SDI Logistica Rio 13,638 292
Emaar Misr for Development 7,361,000 1,799
Polis Banc QF 1,789 1,154
Great Wall Motor Company 828,600 634
Allami Nyomda (Hungarian Printing Co) 471,848 2,218
Komercijalna Banka 6,263 619
---------------------------------------- ---- ------------- --------------
Security name Number US$'000
-------------------------- ---- -------------- --------------
Bank Muscat 1,159,676 1,137
Ooredoo (OMAN) 699,000 954
Refineria La Pampilla SA 18,064,485 1,156
Belle Corp 6090180 12,778,000 751
Fabryki Mebli Forte 58,000 734
Kernel Holdings 71,923 914
Gulf Warehousing 91,694 1,047
Galenika Fitofarma 79,115 2,201
Artes SA 53,122 145
One Tech Holding 248,305 1,527
Blom Bank GDS 95,919 1,007
KCell JT 377,630 1,624
Lebanese GDS 114,499 828
Onatel BF 60,809 866
--------------------------- ---- ------------- --------------
Total 27,279
--------------------------- ---- ------------- --------------
9 Trade and other receivables
30 June 2018 31 December 2017
US$'000 US$'000
----------------------------------- ------------- -----------------
Prepayments and other receivables 461 323
461 323
----------------------------------- ------------- -----------------
10 Provisions
The Company is now operating as a realisation company. The calculation of the net asset value includes an estimate of liquidation costs and a provision for fees and expenses expected to be incurred in realising the assets. As at 30 June 2018 these provisions amounted to GBP1,163,605 (30 June 2017: GBPNil).
11 (Loss)/earnings per share
Basic (loss)/earnings per share is calculated by dividing the profit for the period attributable to equity holders of the Company by the weighted-average number of ordinary shares in issue during the period.
Period ended Period ended
30 June 2018 30 June 2017
------------------------------------------------------------------------- --------------------- --------------
(Loss)/profit attributable to equity holders of the Company (US$'000) (2,426) 3,992
Weighted average number of ordinary shares in issue (thousands)
(excluding 6,146,931 held
in treasury (2017: excluding 6,829,924 held in treasury) 58,123 63,809
------------------------------------------------------------------------- --------------------- --------------
(Loss)/earnings per share (cent per share) (4.17) 6.26
------------------------------------------------------------------------- --------------------- --------------
12 Share capital
30 June 2018 31 December
US$'000 2017
US$'000
-------------------------------------------- ------------- ------------
Authorised:
-------------------------------------------- ------------- ------------
400,000,000 Ordinary shares of US$0.10
each 40,000,000 40,000,000
-------------------------------------------- ------------- ------------
Allotted, Called-up and Fully-Paid:
-------------------------------------------- ------------- ------------
55,322,381 (31 December 2017: 61,469,312)
Ordinary shares of US$0.10 each in issue,
with full voting rights 5,532 6,147
6,146,931 (31 December 2017: 6,829,924)
Ordinary shares of US$0.10 each in issue,
held in treasury 615 683
-------------------------------------------- ------------- ------------
6,147 6,830
-------------------------------------------- ------------- ------------
As at 15 March 2018 6,146,931 shares were repurchased and placed in treasury and 6,829,924 shares previously held in treasury were cancelled. The Ordinary shares held in treasury have no voting rights and are not entitled to dividends
13 Taxation
30 June 2018 31 December 2017
US$'000 US$'000
----------------------------------------- ------------- -----------------
Balance at 1 January 545 373
Withholding taxes on dividends received 28 383
Tax paid (250) (211)
Closing Balance 323 545
----------------------------------------- ------------- -----------------
Isle of Man taxation
The Company is resident in the Isle of Man which means that it pays income tax at 0%. The Company pays a corporate charge of GBP390 to the Isle of Man Government for each tax year.
14 Directors' remuneration
Mr Van den Broeck, as Chairman, is entitled to remuneration of US$45,000 per annum from the date of his appointment and Mr Dungate and Mr Bartlett are each entitled to remuneration of US$30,000 per annum from the respective dates of their appointments.
15 Trade and other payables
30 June 2018 31 December 2017
US$'000 US$'000
------------------------------- ------------- -----------------
Sundry creditors and accruals 1,378 856
------------------------------- ------------- -----------------
Total 1,378 856
------------------------------- ------------- -----------------
16 Contingent liabilities and capital commitments
The Company has no outstanding capital commitments as at 30 June 2018.
17 Post balance sheet events
On 10 July 2018 at an Extraordinary General Meeting, Shareholders approved a change in the Company's investing policy. The new investing policy states that "the Company shall cease to make any new investments and shall realise its portfolio of investments in an orderly manner and return the net proceeds to Shareholders as soon as practicable".
In order to give the Board maximum flexibility in terms of the manner in which the net proceeds of the realisation of the Company's portfolio of investments is returned to Shareholders, it was also proposed to re-register the Company under the 2006 Act. As part of this process the Company adopted the New Articles which, in addition to reflecting the fact that the Company would be re-registered under the 2006 Act, would include a mechanism to allow the Company to redeem compulsorily Ordinary Shares as a means of returning the proceeds of realisations to Shareholders.
This mechanism was used to carry out a compulsory partial redemption of 60% of the shares in issue on 26 July 2018, returning $36.8 million to Shareholders as a result.
A second compulsory partial redemption of 50% of the remaining shares in issue was announced on 26 September 2018, which will return a further $11.8 million to Shareholders in October 2018t.
The Board, having consulted with Shareholders, believed that it was appropriate and in the best interests of Shareholders to incentivise the Investment Manager to realise, in accordance with the New Investment Policy, the Company's portfolio of investments in a timely fashion. The arrangements with the Investment Manager were varied with effect from 1 July 2018 whereby the then current fee structure, 1.25 per cent. per annum of NAV and a performance fee linked to NAV increases, have been replaced with an arrangement whereby the Investment Manager will be entitled to receive a fee equal to 1 per cent. of any Distributions made to Shareholders, which would include cash that is returned by way of a Compulsory Redemption of Ordinary Shares.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR SEIFEWFASEIU
(END) Dow Jones Newswires
September 27, 2018 09:30 ET (13:30 GMT)
1 Year Terra Capital Chart |
1 Month Terra Capital Chart |
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
