Investment holding company Astoria has reported a marginal increase in its net asset value for the three months to September, as it continues to mull options to return capital to shareholders ahead of an anticipated unsolicited offer by RECM and Calibre (RAC).
The company, which is domiciled in Mauritius, reported a 5% increase in net asset value to $1.20 per share at the end of September. This was marginally ahead of the MSCI World Index which the company benchmarks itself against, which delivered a return of 4.9% over the same period. MSCI World is a broad global equity index that represents large and mid cap equity performance across 23 developed markets countries.
“The listed equity portfolio benefited from currency revaluations but remained broadly stable in its composition,” says Astoria nonexecutive director Peter Armitage, who is also the CEO of Anchor Capital. Anchor is the designated investment adviser for Astoria.
The company was established to provide investors with exposure to a global basket of investments, primarily through the selection of listed equities in developed markets. At the end of the quarter the portfolio comprised 74% global equities, 8% private equity, 2% fixed income and 16% cash. Armitage says a large portion of the cash is earmarked for further drawdowns to commitments the company has made to private equity funds.
Some of the top holdings in the equity portfolio include Apple, Facebook, Mastercard and Home Depot.
Year to date Astoria’s share price is up 12% in stark contrast to the FTSE/JSE All Share Index which has lost 14%.
But the company continues to trade at a discount to its net asset value, which is what has motivated RECM and Calibre to prepare to make an offer to shareholders after building up a stake of just under 30% in the company.
“We are still intent on making an offer,” says Jan van Niekerk, a director of RECM and Calibre. “Astoria shares have persistently traded at a discount to its net asset value, so it’s cheap relative to the value of its assets. We think there is a different way of managing the assets that would realise more value for shareholders. We continue to engage with the board and regulators on the various issues,” says Van Niekerk.
The board of Astoria launched an application in the Mauritian courts to prevent RAC from making a bid. A hearing has been set down for November 22. In the meantime, the board together with RAC and other shareholders, are evaluating options to return capital to shareholders.
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