Bramdean bid is best option, board claims
THE BOARD of Bramdean Alternatives, the fund run by Nicola Horlick, yesterday urged shareholders to snub proposals from Vincent Tchenguiz’s investment vehicle Elsina to oust the board and wind down the fund.
In a statement, the fund’s board said that it was anticipating a takeover bid which would unlock value for investors, adding that it would reveal the identity of the mystery bidder on or before 9 June.
The board, led by chairman Brian Larcombe, said it was entirely independent from Nicola Horlick’s Bramdean Asset Management and pointed to the fact that the board proposed by Elsina to manage the wind-down was not independent.
A spokesman for the company said that Elsina’s plans amounted to a “fire sale” which would not result in the best outcome for investors.
“It’s a takeover through the back door and on the cheap,” he said.
“Shareholders should wait to see if the bid materialises because it is the quickest, best way to unlock cash.”
If Bramdean receives no offer by 31 July, the board said it would “put forward proposals which will enable shareholders seeking a realisation of cash to do so over time – including the possibility of a delisting”.
Elsina, which owns 29 per cent of Bramdean Alternatives, has said that it has the support of 50 per cent of shareholders to remove the board and install three new directors, a claim that Bramdean refutes.
Shareholders will vote on Elsina’s proposals at an extraordinary general meeting requisitioned by Elsina on 18 June.
The row began after Tchenguiz, who has invested £38m in the fund, expressed displeasure at some of Bramdean’s investments.
Elsina declined to comment on the situation last night.