Electra Private Equity shares up as it announces investment shake-up plans

William Turvill
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Edward Bramson (right) with former Sherborne chairman Ian Brindle (Source: City A.M./Laura Lean)

Electra Private Equity's share price jumped two per cent this morning after it announced plans for a company shake-up.

Under the scheme, the private equity firm will move from having a listed investment trust to a "corporate" structure from next year.

It also plans to launch a £200m return of capital to investors in the fourth quarter of this year, a move that will require shareholder approval.

Read more: Electra's second listing in two months is Premier

Electra, which is invested in companies including TGI Fridays and Parkdean Resorts, said the changes, under which the board takes control of investment functions, would lead to annual savings of £25m.

The move, which Electra said will add "significant value" for shareholders, comes after rebel shareholder Edward Bramson took control of the company in May as interim chief executive. He had previously battled his way on to the board.

The FTSE 250 firm also announced in May that it had served notice on a contract under which its investments were handled exclusively by private equity firm Electra Partners.

14 October 2016 @ 10:45amElectra Private Equity (ELTA)

Read more: Bramson makes his presence felt at Electra

Electra first announced the strategic investment review in January.

“I believe that by returning control of all functions to the board we will put in place a more effective, transparent corporate governance structure,” said chairman Neil Johnson.

A much lower-cost executive team, fully accountable to the board and shareholders, will then pursue a strategy of portfolio company improvement and value enhancement, creating maximum value for our shareholders.

We believe that it is important that we move investment management responsibilities to the board, in line with the new strategic direction of the company, to adopt a corporate structure with more typical financial reporting and transparency.

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