Princess Private Equity Picks Equities Over Funds

CEF TIMES: Shareholders at the Princess Private Equity CEF agree on a new investment policy; RENN Universal Growth is to lose its status; and more

Jackie Beard, FCSI, 18 May, 2011 | 9:57AM
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CEF Times: May 13–18
Shares in Mission Capital (MCAP) have been readmitted to AIM following their suspension in August 2010 and delisting in March 2011. The original suspension centred around early discussions of a possible acquisition under Rule 14 of AIM rules, which would have been deemed to be a reverse takeover under this rule. These discussions ended in December 2010 and a heads of terms agreement was signed at this time in relation to a new acquisition. As well as relisting its shares, the company has now produced a trading update.

Shareholders at Princess Private Equity (PEY) have approved the introduction of a new investment policy at the AGM this month. This will see the company shift the focus of its investments away from funds, in favour of direct investment, although the geographical allocation won’t change markedly from its current positioning. Further, the company has reduced its level of permitted borrowing so it may not exceed 30% of the value of its assets; gearing currently stands at just 3% at the time of writing.

RENN Universal Growth (RUG) has announced an error in its previous financial year that will cause it to lose its investment trust status (see this article for more on what qualifies an investment company to have investment trust status). The company has confirmed there will be no corporation tax liability as a result of this breach as it had made net realised losses in that year. Further, it is attempting to rectify the situation and have the status reinstated this year and we expect further clarification on this in due course. It’s disappointing to see such a breach, particularly from a long-serving board whose average tenure is over nine years.

The hostility continues at SVM UK Active (SVU). The fund’s board has now recommended the offer from Cyrun to its shareholders on the basis that Cyrun looks set to win the battle, as it holds more than 42% of the issued share capital. Cyrun has also increased its minimum price per share from 176p to 191.2p.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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