October 29, 2010 | by Private Equity Holding AG
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October 29, 2010, Private Equity Holding AG (PEH) reports a total comprehensive loss of EUR 3.3m for the first six months of the financial year 2010/2011. At the end of the quarter, the net asset value per share (NAV) stood at EUR 51.13 (CHF 68.07), which represents an increase of 9.3% over the last twelve months. Over the last six months, however, the NAV has decreased by 3.7%. During the reporting quarter, a volatile FX environment and more particularly the strengthening of the EUR versus the USD has resulted in a lower NAV.
The closing price per share on September 30, 2010 was CHF 34.85 (EUR 26.18), a decrease of 5.8% during the first half of the financial year. The discount between the share price and the NAV (48.8% as of 30.09.2010) continues to be a core area of consideration for both the Board of Directors and the manager, Alpha Associates. An important measure was the implementation of a distribution policy. PEH is the first and is still the only SIX-listed private equity investment company, which made a commitment to share its gains with its shareholders. The 2010 distribution of CHF 2 per share was paid during September 2010. Given the stock’s attractive yield, we have already noticed a number of pension funds purchasing PEH-shares.
Activity levels in the portfolio have increased throughout the quarter. Both M&A and IPO markets continue to recover and are fueling private markets with liquidity. Just before the quarter end, Doughty Hanson, the manager of PEH’s largest fund commitment, announced the sale of Impress, one of two remaining portfolio companies. Impress is the global market leader in the consumer metal packaging industry. The transaction is expected to close before year end at an investment multiple of 2.6x.
In September, PEH filed an action against Bank Vontobel in connection with PEH’s capital increase in March 2000. Bank Vontobel had underwritten this capital increase. Shortly after the allegedly successful placement of the capital increase, however, the bank transferred almost 30% of the newly issued shares from its own books to a subsidiary of PEH in return for a payment of CHF 138.8m. PEH claims that this transaction was and is void. As reported in February 2010, PEH has minimized its litigation risk via a litigation funding contract with Allianz Prozess Finanz GmbH in Munich. PEH offers investors premier access to a diversified private equity portfolio and an attractive blend of mature assets providing short/mid-term liquidity (such as Doughty Hanson III mentioned above) and more recent investments in high profile private equity funds ascertaining the future growth of the Company. The Board of Directors and the manager, Alpha Associates, are committed to this long-term growth strategy.
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Private Equity Holding AG Innere Güterstrasse 4 CH-6300 Zug T.: +41-41-726 79 80 F.: +41-41-726 79 81
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Conclusion of this article: « Half- Year Report as of September 30, 2010 »
Source: Private Equity Holding AG, Press release