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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Value Catalyst | LSE:VCF | London | Ordinary Share | KYG9315M1134 | ORD USD0.00001 (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 30.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMVCF
RNS Number : 8667D
Value Catalyst Fund Limited (The)
30 March 2011
30 March 2011
The Value Catalyst Fund Limited
Unaudited Interim Report
For the Period from 1st July, 2010 to 31st December, 2010
The Board of The Value Catalyst Fund Limited announces its results for the six months ended 31st December, 2010.
The Company confirms that copies of the interim results for the six months to 30(th) June, 2010 will be available, today, on its website, http://www.valuecatalystfund.com.
Enquiries:
Azhic Basirov / Siobhan Sergeant
Smith & Williamson Corporate Finance Limited
Tel +44 (0)20 7131 4000
Investment Adviser's Report
For the six months ended 31st December 2010
Future of The Value Catalyst Fund - update
On 14th February 2011 the Board of The Value Catalyst Fund Ltd ("VCF" or "the Company") published further details of its proposals for the reorganisation of the Company. Subject to shareholder approval it is intended that the Company's portfolio will be divided into two separate pools of assets - a continuation pool and a realisation pool - according to shareholder elections. The proposals will provide an opportunity for shareholders to continue being invested in the Company, whilst also offering those shareholders desiring an earlier potential exit the ability to realise their investment in accordance with an orderly realisation programme.
The Board was pleased to note that shareholders voted in favour of the continuation for a further five years at the last annual general meeting of the Company but, regardless, wishes to offer shareholders new liquidity options. Historically, VCF's shares have traded at times on a significant discount to NAV and despite the size of the Company, the liquidity in the shares has not been good. As such, the Board would like to see both continuing and realising shareholders offered a structure which reduces any discount to NAV and provides regular realisation opportunities at around NAV level. The Board has therefore formulated proposals which the Directors believe will maximise the options available to shareholders.
In summary these comprise:
-- an invitation to shareholders to remain invested in a company focussed on generating value from investing in undervalued asset based companies including closed-ended and property companies and other discounted situations, with opportunities to realise their investment following the expiry of an initial twelve month period; and
-- an opportunity for shareholders desiring to exit their investment in the Company to rollover their investment into a realisation pool of assets, to be realised over time in accordance with an orderly programme which will seek to return capital to shareholders in stages and as soon as is reasonably practicable
A circular containing proposals outlined above will be posted to shareholders in due course.
The Company performed very well ahead of the credit crisis, but during the credit crisis suffered from being geared and holding large strategic stakes. As an activist fund such positions are part of the investment process and the Company recognised a substantial uplift in value of DouglasBay Capital plc ("DouglasBay"), during the period to 31 December 2010 which resulted in an uplift of 22.95% to the NAV, demonstrating the underlying value in the portfolio. We believe that the full value of DouglasBay is yet to be recognised in the NAV and there is substantial potential in the Company's other major investments. For the six months ended 31st December 2010 VCF returned 27.06%. Even with the credit crisis effects and the conservative valuation of certain positions within the portfolio, the NAV of the Company has increased by 20.44% with distributions re-invested, since inception to the 31(st) December 2010, against a fall of 13.44% in the S&P and a fall of 3.63% in the FTSE (US$) over the same period.
Portfolio Review
TDG was bought by DouglasBay a week before Lehmans collapsed having borrowed heavily to make the purchase. That certainly made for an exciting initial period as few knew quite how the world was going to cope. It has been a very successful investment despite its timing and will realise a gain of approximately 65% over the two years it was held for. That against one of the worst backdrops imaginable. The realisation of TDG and the distribution of the proceeds from DouglasBay will move the Company from a leveraged position to a net cash position and so allow for the start of distributions to shareholders choosing to exit.
Celtic Property Development SA ("Celtic") has progressed well and is waiting on planning for its big development site. Planning has been slower than hoped but we expect it to be finalised in the next three months. That will allow Celtic to push on and start building out the site and create value for the Company. Celtic was listed on the Warsaw Stock Exchange in December and while it did not raise any money it is a precursor to Celtic being able to raise money when it receives the relevant permits on its major development site. Over the next two years we expect Celtic to realise substantial value from its assets.
Ceiba Investments Limited de-listed from the Channel Islands Stock Exchange in December and is re-listing in Canada. It has also completed a major hotel purchase in Cuba and we believe it has substantial value to come over the next year.
Over the period, VCF has continued to build positions in both closed-end funds and property companies and has announced a number of declared positions. The attractiveness of the opportunities in this area does fluctuate and was better at the beginning of 2010 than the end. Over the last couple of months as markets have been weak we have seen better opportunities but it is an area where too much capital will reduce returns.
Alliance Trust PLC ("Alliance")
At GBP2.4bn (market cap as at 31st December 2010), Alliance Trust is Britain's largest investment trust. It is also one of the oldest investment trusts in existence (123 years) with more than 50,000 retail investors. As of 31st December 2010, funds managed by Laxey owned 9,547,403 shares in Alliance, representing 1.44% of the shares in issue, worth approx $56m.
Compared to its peers, Alliance is a poor performer trading at a consistently wide discount (2007: average of 16.30%; 2008: average of 16.00%; 2009: average of 15.40% and 2010: average of 17.10%). However, unlike its peers, Alliance has not sought to address the discount at which its shares trade to NAV. Likened to "a rusty old oil tanker unable to change course without difficulty and possessing only one speed (slow)" (Jeff Prestridge, Daily Mail, 20 February 2011), Alliance has seemingly ignored calls for it to tackle the discount.
In November 2010 Laxey wrote to the board of Alliance to request that it allow shareholders to debate the introduction of a Discount Containment Mechanism ("DCM") designed to limit the discount to NAV where the share price could trade to a maximum of 10% (excluding income and with debt treated at market value) in normal market conditions. A full copy of our letter may be found here: https://www.atstaction.co.uk.
In the same letter, we called into question the Alliance Trust Savings Scheme. This is a scheme that allows the Alliance Trust Savings' nominee shareholder to scale up the votes in the Alliance Trust Savings Enfranchisement Scheme ("SEF") by a huge multiple, including the votes cast by Alliance Trust PLC's management. In effect, it enables Alliance to vote on behalf of its shareholders who hold their shares through its Alliance Trust Savings Scheme. Unless an Alliance shareholder who has not voted specifically opts out of the SEF, Alliance may vote any uncast shares in proportion to the votes cast overall by its scheme. As at the 10th November 2010 the scheme held 21.5% of Alliance shares and was by far and away the largest shareholder. With no disclosure on the actual votes cast within the scheme, shareholders have no idea of the extent of scaling up. We believe that the numbers within the scheme that do vote is minimal, perhaps sub 0.5%. If correct, then at the very least Alliance shareholders should be made aware of the materiality of the scaling up.
Our action has struck a chord with many Alliance (and non-Alliance) shareholders, commentators, other investment trusts and brokers. When Alliance rejected our calls for shareholders to have the right to debate the introduction of a DCM and the operation of the Alliance Savings Scheme, we formally requested that the Alliance board put corresponding resolutions to all shareholders at the forthcoming AGM in May. We have also requested that ahead of the vote Alliance remove itself from the Alliance Trust Savings Enfranchisement Scheme.
After we formally requisitioned Alliance at the end of January, on the 11th February 2011 Alliance conducted a share buy-back and cancellation of 75,000 shares. To put this into context, this is one of only a handful of buy-backs Alliance has ever conducted in its 123 year history. In a note on the same date, Canaccord called this "relatively groundbreaking" and "nice to see (at last!!)".
Any shares in Alliance held by the realisation portion of the Company will either be held until value has been realised or bought by Laxey Partners and will not result in any selling pressure on the trust.
Alternative Investment Trust ("AIT")
The Australian investment trust, AIT, has exposure to a portfolio of leading absolute return funds and a remaining single direct investment. Formerly Everest Babcock & Brown Alternative Investment Trust, following a vote by unit holders at a meeting held on 30th January 2009 AIT was put into wind down with an orderly realisation of its portfolio to be managed by Laxey.
By August 2010 AIT had repaid its outstanding debt (from the peak of AUD289m in January 2009) and post 31st December 2010 had amassed a sizeable cash balance from realisation proceeds and the expiration of a secondary swap within the main Swap that had a sizeable cash balance. These proceeds were paid to unit holders, including VCF, on 18th February 2011.
Post this return of capital, the remainder of AIT's portfolio remains in liquidation or is proceeding according to the original redemption terms (68% of AIT's gross assets at the time of writing), with 30% of assets side pocketed without a stated redemption point (although in liquidation) and the remainder cash (2%). Excluding side pocket assets, Laxey expects a further 22% of AIT's gross assets (gross assets were AUD 179m as at 31st December 2010) to be returned in redemption proceeds over the course of 2011.
Atlantis Japan Growth Fund Limited ("Atlantis Japan")
Atlantis Japan is an investment trust incorporated in Guernsey. The fund aims to achieve long term capital growth through investing in a diversified portfolio of medium/smaller companies in Japan.
In order to tackle the discount and enhance trading liquidity, in October 2010, the Board put forward proposals for a regular redemption facility which will enable shareholders to redeem all or part of their holding, subject to directors' discretion, on a 4 monthly basis. The initial redemptions are at a discount of 4% to FAV (Fair Asset Value), falling to 3% on the third redemption and 2% on the fifth redemption, and expected to remain at 2% thereafter.
The first redemption opportunity was on the 28 February 2011; 23.6% of the share capital including us elected to redeem. We have also bought further shares for further redemptions as we thought the market did not seem to price the value of the reorganization initially. A Redemption Pool has been formed containing the exiting assets. On 18 March 2011, the Board of Atlantis Japan approved an interim payment equivalent to approximately 72.86 pence per share to those who elected for the first redemption, funded by the sale of approximately 85.1% (by market value on 28 February 2011) of the investments held in the Redemption Pool. In addition, 99.4% of the payment reflects sales made before the earthquake hit Northern Japan. The board of Atlantis Japan has decided to suspend further investment sales in the Redemption Pool until market conditions in Japan stabilise.
BB Biotech
BB Biotech invests in biotechnology companies and is one of the world's largest investors in this sector with CHF 1.2 bn in assets under management. The Company is listed in Switzerland, Germany and Italy. Its investments are focused on listed companies that are developing and commercializing novel medical treatments and cures.
Since the credit crisis in the autumn of 2008, the discount between NAV and the share price of BB Biotech had remained at a high level of 26% (average discount during the preceding 12 months).
The company has decided to bring the discount towards a targeted range of 10% to 15% within the next 12 to 18 months. The solution and a steady reduction of the discount will be achieved by reducing the number of shares through a series of share buy backs with the company committed to seeking approval several times a year from Investors to renew its buying capability if required. The board have put forward a very clear policy to reduce the discount to the benefit of all shareholders and we think they have created an impressive approach.
Private Equity Investor plc
Private Equity Investor plc has continued to surprise on the upside and has received good cash flows from realisations from its underlying limited partnership investments. As a private equity fund with no over funding issues it is in a very strong position and has continued to distribute cash to shareholders. On 11th January 2011 a repurchase offer was announced, which equated to 38.25p per share. That distribution was paid on 16th February 2011. We are likely to see further distributions later this year.
LinQ Resources Fund
As mentioned in our last commentary, LinQ Resources Fund carried out a tender for 25% with an additional conditional 10% at a discount of 15%. We exited the whole of our position at the 15% discount having bought at an average discount in excess of 30%. We received the bulk of the money as a return of capital on 7th February 2011 and the balance as a dividend one day later for a total return of over 28%.
Statement of Comprehensive Income (Unaudited)
For the six months ended 31st December 2010
2010 2009 US$ US$ Income Dividends on long equity securities and investment funds 2,800,018 2,466,261 Interest - Cash balances 373,104 266,698 - Debt securities 936 248,282 Other income 135,882 128,451 Net realised losses on financial assets and liabilities at fair value through profit or loss - Equities and funds (6,219,061) (24,382,127) - Derivatives (2,445,105) (3,130,695) - Forwards (12,005,012) (6,720,299) Net unrealised gains/(losses) on financial assets and liabilities other than currency forwards at fair value through profit or loss - Equities and funds 44,134,814 34,589,472 - Derivatives (590,770) (1,743,626) - Other foreign currency gains/(losses) 345,899 (54,412) Net unrealised gain on currency forwards 1,506,266 414,226 28,036,971 2,082,231 Expenses Investment expenses Dividends payable on short equity securities and investment funds 11,283 13,685 Interest expense - Cash balances 265,299 796,360 - Derivatives 127,478 121,260 Total Investment expenses 404,060 931,305 Other expenses Investment advisory fees 1,051,653 1,446,760 Audit fees 18,000 18,000 Administration fees 93,166 89,622 Directors' fees and expenses 59,974 63,310 Other expenses 475,677 687,932 Total other expenses 1,698,470 2,305,624 Total expenses 2,102,530 3,236,929 Net gain/(loss) 25,934,441 (1,154,698) Other comprehensive income/(loss) - - Total comprehensive income/(loss) for the period 25,934,441 (1,154,698) Gain/(loss) per ordinary share Basic and fully diluted US$0.15 US$(0.01)
Statement of Financial Position
As at 31(st) December 2010
30th 31st December June 31st December 2010 2010 2009 (Unaudited) (Audited) (Unaudited) US$ US$ US$ Assets Cash at bank and brokers 2,123,677 3,317,261 1,689,776 Cash held as margin at brokers 1,276,254 1,275,886 928,802 Investment funds - long at fair value through profit or loss 62,851,108 36,413,335 30,646,886 Investment funds - long swaps at fair value through profit or loss 175,342 1,910 52,550 Investment funds - short swaps at fair value through profit or loss - 34,207 - Equities - long at fair value through profit or loss 109,858,704 95,117,255 112,861,383 Equities - warrants at fair value through profit or loss 510,318 2,145,867 2,513,497 Equities swaps - long at fair value through profit or loss 631,516 223,835 359,099 Equities swaps - short at fair value through profit or loss 716 3,714 - Index swaps - short at fair value through profit or loss - 64,629 - Futures - short at fair value through profit or loss 109,107 525,386 - Amounts receivable on currency forwards 26,167 10,919 2,969,036 Amounts due for outstanding sale settlements 363,635 250,451 129,147 Other debtors and accrued income 494,268 1,315,097 264,391 Loan receivable - 410,509 2,191,832 Total assets 178,420,812 141,110,261 154,606,399 Equity Share capital 1,798 1,798 1,798 Share premium 181,934,679 181,934,679 181,934,679 Retained losses (60,173,769) (86,108,210) (79,969,755) Total shareholders' equity 121,762,708 95,828,267 101,966,722 Liabilities Overdrawn balances at brokers 48,714,887 36,400,748 46,761,736 Equities - short at fair value through profit or loss 3,288,019 2,656,934 - Equity swaps - long at fair value through profit or loss - - 4,120,048 Equities swaps - short at fair value through profit or loss 9,576 1,984 15,943 Investment funds - short at fair value through profit or loss 117,100 372,423 27,115 Investment funds - long swaps at fair value through profit or loss 753,837 2,332,775 34,087 Investment funds - short swaps at fair value through profit or loss 1,221 - - Index swaps - short at fair value through profit or loss 17,792 - - Futures - short at fair value through profit or loss 60,236 - 68,010 Amounts payable on currency forwards 1,687,483 3,178,501 3,489 Amounts due for outstanding purchase settlements 926,735 20,407 181,106 Other creditors and accrued expenses 1,081,218 318,222 1,428,143 Total liabilities 56,658,104 45,281,994 52,639,677 Total liabilities and equity 178,420,812 141,110,261 154,606,399 Net asset value per ordinary US$0.72 US$0.56 US$0.60 share
Statement of changes in Shareholders' Equity (Unaudited)
For the six months ended 31st December 2010
Share Share Retained Capital Premium losses Total US$ US$ US$ US$ Balance at 1st July 2009 1,619 171,291,268 (68,171,467) 103,121,420 Total comprehensive loss for the period: Loss for the period - - (1,154,698) (1,154,698) Other comprehensive income - - - - Transaction with owners recorded directly in equity: Contributions by and distributions to owners Capitalisation in lieu of dividend - - (10,643,590) (10,643,590) Issue of shares 179 10,643,411 - 10,643,590 Balance at 31st December 2009 1,798 181,934,679 (79,969,755) 101,966,722 Balance at 1st July 2010 1,798 181,934,679 (86,108,210) 95,828,267 Total comprehensive loss for the period: Profit for the period - - 25,934,441 25,934,441 Other comprehensive income - - - - Transaction with owners recorded directly in equity: Contributions by and distributions to owners Capitalisation in lieu of dividend - - - - Issue of shares - - - - Redemption of shares - - - - Balance at 31st December 2010 1,798 181,934,679 (60,173,769) 121,762,708
Statement of Cash Flows (Unaudited)
For the six months ended 31st December 2010
2010 2009 Note US$ US$ Dividends received 3,249,456 2,441,684 Interest received 745,431 285,124 Other income received 80,675 128,451 Dividends paid on short positions (11,522) (13,685) Advisory fee paid (338,085) (516,138) Administration fee paid (90,206) (95,529) Other expenses paid (526,552) (684,855) Interest paid (373,168) (987,317) Decrease in other receivable - 327,198 Decrease in loans receivable 410,509 477,065 Decrease/(increase) in cash held as margin 54,839 (487,496) Purchase of investments (18,075,544) (5,100,757) Sale of investments 1,366,444 66,912,426 Net cash inflow from operating activities (13,507,723) 62,686,171 (Decrease)/increase in cash and cash equivalents (13,507,723) 62,686,171 Opening cash and cash equivalents (33,083,487) (107,758,132) Closing cash and cash equivalents (46,591,210) (45,071,961) Significant non-cash transactions: Capitalisation in lieu of dividend - 10,643,590
Notes to the financial statements (Unaudited)
For the six months ended 31st December 2010
1. Accounting Policy
The interim financial statements have been prepared in accordance with International Accounting Standard 34: Interim Financial Reporting. Accounting policies have been applied on a consistent basis with those adopted for the last full financial year.
Comparative figures
The comparative figures in the Statement of Comprehensive Income, Statement of Changes in Shareholders' Equity and Statement of Cash Flows relate to the corresponding interim period for the preceding financial year, 1(st) July 2009 to 31(st) December 2009.
Estimates
The preparation of financial statements in conformity with International Financial Reporting Standards requires management to make estimates and assumptions that affect the reported amounts in the financial statements. Management believes that the estimates utilised in preparing its financial statements are reasonable and prudent, however, actual results could differ from those estimates. The most significant estimates and judgements that are required to be made are in respect of the valuation of investments for which no reliable market price is available (see note 3).
2. Cash held as margin at brokers
31st December 30th June 31st December 2010 2010 2009 US$ US$ US$ Cash held as margin at brokers 1,479,185 1,534,024 1,242,809 less: Provision for doubtful debts (202,931) (258,138) (314,007) 1,276,254 1,275,886 928,802
The provision for doubtful debts represents 100% provision against a holding in Kaupthing Singer & Friedlander. An amount of US$55,207 was recovered during the period.
3. Investments
31st December 30th June 31st December 2010 2010 2009 US$ US$ US$ Long positions: Market value 173,273,150 131,569,428 142,279,281 Cost 171,924,435 174,964,222 176,478,954 Short positions: Market value (3,384,120) (2,403,405) (111,068) Proceeds (3,183,357) (3,402,106) (107,334)
All of the Company's investments are designated as financial assets and liabilities held at fair value through profit or loss.
Investments valued by the Investment Advisor using a valuation technique, and having been considered by the Directors, are Celtic Property Development S.A., DouglasBay Capital plc and Balkan Reconstruction Investment Financing SCA.
The Company has a holding in Celtic Property Development S.A. (Celtic) of US$42,174,246, or 23.64% of the Total Assets of the Company as at 31st December 2010 (34.64% of Net Assets). On 23(rd) September 2010 Celtic listed on the Warsaw Stock Exchange. Pre-listing, the shares of Celtic were split on a 1:5 basis. The Directors, with the advice of the Investment Advisor, consider that although Celtic has a stock market quotation, trading is not sufficient to enable the quoted price to be a reliable estimate of fair value. Therefore, the Directors, with the advice of the Investment Advisor, have estimated the fair value based on the proportionate share of the estimated net asset value of Celtic as at 31(st) December 2010. This has resulted in Celtic being carried at PLN27.748 per share at 31(st) December 2010 (30(th) June 2010: EUR35 per share) (PLN29.029 after adjusting for stock split).
The Company has a holding in DouglasBay Capital plc ("DouglasBay") of US$62,666,467, or 35.12% of the Total Assets of the Company as at 31st December 2010 (51.47% of Net Assets). On 29th November 2010 DouglasBay announced the disposal of TDG Limited, its major investment holding, to Norbert Dentressangle SA for an initial consideration of approximately GBP205m, with the precise amount dependent upon the date that closing occurs and the closing adjustments. The European Commission approved the transaction on 21(st) March 2011. When completed, DouglasBay estimates that following the repayment of group debt facilities and transaction costs the company will have cash funds of approximately GBP185m, equivalent to GBP0.143 per DouglasBay share. Post the transaction, DouglasBay will still retain ex-TDG real estate assets worth approximately GBP0.02 per share, giving a total estimated fair value of GBP0.163 per share. As at 31st December 2010, the Directors, with the advice of the Investment Adviser, have resolved to carry the holding in DouglasBay at GBP0.155 per share (30th June 2010: GBP0.10 per share). The difference in carrying price and the estimated fair value of the cash and remaining assets has been set to provide for the fact that the remaining real estate assets may not realise their estimated fair value upon
sale.
The Company has a holding in Balkan Reconstruction Investment Financing S.C.A. (BRIF) of US$5,216,570, or 2.92% of the Total Assets of the Company as at 31st December 2010 (4.28% of Net Assets). BRIF is not quoted and the Directors, with the advice of the Investment Advisor, consider that the last reported net asset value before delisting as at 31st December 2010 is not a reliable estimate of fair value. Instead the investment is being carried at EUR12.77 per share (30th June 2010: EUR12.77 per share), the price at which BRIF issued new shares in December 2008, February 2009 and March 2009. As no more recent information has been made available, the Directors, with the advice of the Investment Advisor, consider this to be the most accurate estimate of fair value as at 31st December 2010.
These three investments, which continue to be measured in the Statement of Financial Position using the above mentioned valuation techniques, comprise a combined total value of US$110,057,283 or 61.68% of the Total Assets of the Company as at 31st December 2010 (90.39% of Net Assets). The net change in fair value for the period recorded in the Statement of Comprehensive Income amounted to a gain of US$26,704,376 (31(st) December 2009: loss of US$334,659).
4. Share capital
Period ended Period ended Period ended Period ended 31st 31st 31st December December 31st December December 2010 2010 2009 2009 Number US$ Number US$ Authorised Share Capital Founder shares of US$1 each 100 100 100 100 Ordinary shares of US$0.00001 each 4,990,000,000 49,900 4,990,000,000 49,900 50,000 50,000 Period ended Period ended Period ended Period ended 31st 31st 31st December December 31st December December 2010 2010 2009 2009 Number US$ Number US$ Issued share capital Founder shares of US$1 each 100 100 100 100 Ordinary shares of US$0.00001 each At 1st July 169,915,650 1,698 152,051,283 1,519 Capitalization in lieu of dividend - - 17,864,367 179 At 31st December 169,915,650 1,698 169,915,650 1,698 Total issued share capital 1,798 1,798
5. Reserves
Period ended Period ended 31st December 31st December 2010 2009 US$ US$ Share Premium At 1st July 181,934,679 171,291,268 Relating to issue of shares - 10,643,411 At 31st December 181,934,679 181,934,679 Retained losses At 1st July (86,108,210) (68,171,467) Comprehensive income/(loss) for the period 25,934,441 (1,154,698) Dividend - (10,643,590) At 31st December (60,173,769) (79,969,755)
6. Dividend
2010 Dividend
No dividend was paid in respect of the year ended 30(th) June 2010.
2009 Dividend US$ Paid 31(st) December 2009 - Capitalisation in lieu of dividend of US$0.07 per ordinary share 10,643,590
7. Prime brokerage agreements
Under the terms of the prime brokerage agreement which the Company has entered into, the prime broker holds a fixed charge over the Company's assets and cash held with the prime broker as security for the payment and performance by the Company of its obligations to the prime broker.
8. Guarantee
As part of the acquisition of TDG plc by DouglasBay Capital plc in October 2008, the Company and DouglasBay Capital plc executed a four year guarantee of GBP12.2m, a seven year guarantee of GBP15m and an unlimited guarantee of GBP3.3m in favour of TDG Trustees Limited ("TDGTL") (pension trustee for TDG), pursuant to which, the Company and DouglasBay Capital plc agreed to guarantee to TDGTL the punctual performance by TDG of all its guaranteed obligations. The maximum liability is GBP30.5m.
The Company will be released from providing these guarantees upon the completion of the sale of TDG by DouglasBay Capital plc.
9. Copies of interim statements
Copies of the interim statements will be sent to shareholders. Further copies will be available from Quintillion Limited, 24-26 City Quay, Dublin 2, Ireland.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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