TVC Holdings to give out €91m to shareholders, delist from Dublin and London exchangesTuesday 13 May 2014 12.50
Investment holding company TVC Holdings has decided to distribute €91m, or € 0.95 per ordinary share, to shareholders in July in cash and UTV shares.
After a detailed review of its strategic options, TVC said it has also decided to cancel its listings on the Dublin and London stock exchanges and to significantly reduce its group overheads.
It said it will carry out an orderly realisation of its remaining assets, which is expected to take a number of years, to maximise value for shareholders.
Commenting on the move, Davy said it was a welcome development for shareholders as it will see the release of the intrinsic value in shares which the market has persistently undervalued.
The stockbrokers said the distribution of capital is logical and a continuation of the shareholder-friendly actions undertaken in 2013.
The company also reported today pre-tax profits of €33.4m for the year to the end of March, up substantially from the €6.6m reported the previous year.
During the 12 month period, the company subscribed €15m for new shares in the Dalata Hotel Group and then sold the entire shareholding for €30.4m - making a profit on disposal of €13.4m.
It also sold 7.6 million shares in UTV Media for a total of €22.1m, realising a profit on disposal of €8.2m. Including dividends received to date, this sale enable TVC to recover the full cost of its investment in UTV.
The company said it had net assets of €101m at the end of March, including cash in the bank of €67.3m, quoted equity investments of €27.5m and unquoted investments of €5.6m. TVC said it had no debts.
TVC's executive chairman Shane Reihill said that due to both the continuing lack of suitable investment opportunities and the current equity funding environment, the board had decided to make a large capital distribution to shareholders and, over a number of years, to carry out an orderly realisation of TVC's remaining assets to maximise value.
"We believe that this strategy is in the best interests of all our shareholders," he added.