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20 November 2014

Charles Russell Speechlys acts for Eredene Capital PLC on its third tender offer and on its proposals for cancellation of its AIM quotation and re-registration as a private company

Charles Russell Speechlys’ Corporate Advisory team is acting as the legal adviser to Eredene Capital PLC (the Company), a specialist investor in Indian infrastructure, on the following:

  • a tender offer by Numis Securities for up to 12 per cent. of the issued share capital of the Company (the Tender Offer);
  • the cancellation of admission of the Company’s securities to trading on AIM (the Cancellation); and
  • the re-registration of the Company as a private limited company (the Re-registration).

The Tender Offer follows on from the Company’s announcement in July 2012 that it had started to extract value from its portfolio by embarking on an orderly sale of its assets in India, with a view to returning proceeds to shareholders, and from tender offers made in 2012 and 2013.

Should the shareholders all tender their basic entitlement, the Company would distribute approximately £3 million to shareholders through the Tender Offer. 

At the same time as it announced the Tender Offer, the Company proposed the Cancellation, with the intention of reducing operating costs and better achieving its divestment strategy, and also the Re-registration as, on Cancellation, the directors consider that there is little benefit in maintaining the Company’s status as a public limited company whilst Re-registration would enable the Company to effect a capital reduction in order to return further capital to shareholders by a simpler and less costly procedure.

Special Resolutions approving the Cancellation and the Re-registration were passed at a general meeting of the Company held on 19 November 2014.  The Cancellation will become effective at 7.00 a.m. on 11 December 2014 and the Re-registration is expected to take place on 17 December 2014.

The Charles Russell Speechlys team advising the Company is led by partner Victoria Younghusband and includes Corporate associate Chris Manning and trainee Simon Holdsworth.  Corporate Brokers Numis Securities (David Benda) and Nomad Grant Thornton (Philip Secrett and Jen Clarke) are also acting for the Company.