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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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Eredene and consortium partners have also withdrawn from concession to build and operate the Ennore Container Terminal and have a new slimmed down management team in place in India to concentrate on maximising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
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
