Eredene Capital reports losses in half-yearly

Eredene Capital reported Wednesday a 10m pound loss in its half-yearly report, following its decision to sell its stake in Matheran Realty and its subsidiary Gopi Resorts.

The London-based investor in Indian infrastructure has released its unaudited interim results for the six month period ended September 30th, 2012, revealing a considerable drop in revenue compared to the previous year's loss of £1.5m.

The company said the results come off the back of £4.5m spent on ongoing operations and £6.6m on the write-down in the investment of Mumbai-based Matheran and Gopi.

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Eredene has signed an indicative term sheet with an undisclosed prospective buyer for the low-cost housing development near Mumbai. The organisation held 45% stake in Matheran and purchased an additional 42% for £2.6 in July after settlement of arbitration with another shareholder. The firm also held 32.25% in Gopi Resorts.

The investment group referenced the write-down in its net asset value of shares which was reported at 16.7p, down 2.9 from a year ago.

Eredene and consortium partners have also withdrawn from concession to build and operate the Ennore Container Terminal and have a new slimmed down management team in place in India to concentrate on maximising value of its investments.

"Eredene is focused on maximising the value of its investments in India, and the Company intends over time to return more capital to shareholders," the company said in a statement.

"Eredene has put in place a smaller, less costly team in India to concentrate on managing the existing portfolio and on realising its full market potential. An independent detailed financial review of the Eredene Group's key investments in India has been carried out with broadly satisfactory results."

RD