EIH PLC Market Update (1229U)
21 November 2019 - 8:00AM
UK Regulatory
TIDMEIH
RNS Number : 1229U
EIH PLC
21 November 2019
EIH plc ("EIH" or the Company")
Market Update
The Company has been advised by EIF's Investment Manager that
the life of the Evolvence India Fund PCC ("EIF") has been extended
until 31 October 2020, with the likelihood that further extensions
will be required thereafter.
During the extension period EIF's Investment Manager will not be
charging management fees although the fund will still be incurring
expenses including administrative, legal, accounting and deal
costs.
The unaudited fair value of EIF, as disclosed in EIH's interim
results for the half year ended 30 June 2019, was US$9.4 million.
The Company also confirms that the expected distribution of
approximately US$0.9 million from EIF, as described in the interim
results, has been received and the Company currently holds US$1.37
million in net cash balances.
In the context of the extension of EIF's life until 31 October
2020, however, the Directors have reviewed certain underlying
financial information provided to them by EIF's Investment Manager.
The Directors have concluded that, while they remain confident that
further realisations from EIF's underling portfolio will be
achieved, there is now a higher level of uncertainty as to both the
value of the remaining assets to be realised and the timing of
distributions to shareholders. Moreover, the Investment Manager has
indicated that certain assets are the subject of negotiations for
sale at a discount to the carrying value stated in our Interim
results as at 30 June 2019.
The Directors intend to consult with key shareholders with a
view to seeking approval for the cancellation of the admission of
the Company's shares to trading on AIM. The Directors believe
that:
-- There is a clear lack of liquidity in the Shares of the Company;
-- The costs associated with maintaining a listing on AIM are
now disproportionate to the value provided by the listing, and the
Board expects savings arising from the cancellation to amount to at
least GBP75,000 per annum.
The Directors confirm that, following cancellation, it would
continue with its stated objective to realise assets at the
appropriate time and value, and to return the proceeds, less
expenses, to EIH's shareholders, while at the same time managing
the Company's operating costs carefully.
Further announcements will be made following the consultation
with key shareholders and to detail any proposals to be presented
to shareholders. Any cancellation resolution to be put to
shareholders would be conditional upon the approval of not less
than 75 per cent. of the votes cast by shareholders at a general
meeting.
For further information, please contact:
EIH plc
Rhys Davies
Tel: +41 (0)796200215
Nplus1 Singer Advisory LLP
(Nominated Advisor)
James Maxwell
Tel: +44 (0)207 496 3000
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END
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