3i dump chief executive as shares tumble
Private equity group 3i today announced the departure of chief executive Philip Yea as a consequence of the 70% plus fall in the share price over the last year. The company also announced a substantial reduction in the value of investments held within its various portfolios which amounted to nearly £700 million. There is also a strong suggestion that the group will be forced into a fundraising with debt creeping to over £2 billion.
3i has been one of the leading privately equity companies for some time but the current economic downturn and the lack of liquidity in the market has seen the group struggle over the last few months. It is not the first private equity company to hit financial trouble as many in the sector have had to announce fund-raising exercises to pay down their debts. Ultimately the group has a very attractive portfolio of well-known brand names and businesses which bodes well for the future. However, the short-term reduction in the value of its investments and the increase in the level of debt are dictating short-term actions by the group.
The shares are currently valued at just over two pounds while investment analysts suggest the net asset value the group is somewhere in the region of 640p to 680p, although sentiment is certainly against the shares at this moment in time. Professional advice should be taken if you are considering an investment in the UK stock market.
Share this..
Related stories
Royal Bank of Scotland in £15.8 billion debt exchange
In a complicated financial transaction, Royal Bank of Scotland has unveiled plans to buy back £15.8 billion of debt at a discount to its face value which will actually generate a £1.25 billion paper profit for the bank. The debt buyback is expected to increase the company's core tier 1 capital ratio by around 30 basis points which will improve the company's financial standing and create a firm b...
Read MoreBritish kids bag billions in pocket money
British children receive a massive £29 billion in pocket money each year, according to research conducted by Abbey Current Accounts among 11 to 18-year-olds. The average child receives £12.22 in pocket money, but kids in Yorkshire lead the way, receiving the most out of any children in the country at £16.33 each week from their generous parents, while children in the West Midlands got the least...
Read MoreUK government announces shared maternity leave
The UK government has today revealed that new mothers will be able to split their maternity leave between themselves and their husband effectively giving the opportunity for fathers to take six months maternity leave from their work. Despite the fact this is an issue which has been ongoing since 2004 when the Conservative party first suggested such a move it has not been well received in the busin...
Read MoreShould the formal retirement age be abolished?
A report by the Equality and Human Rights Commission has today prompted a very controversial and deep thinking argument regarding the UK retirement system. The commission has called on the government to abolish the formal retirement age and indeed introduce incentives for employers to retain those more mature workers and use their experience for as long as possible. But is this something of a doub...
Read MoreWhat Is Happening In The UK Treasury Department?
The Treasury has not just been a vital component of government it has been THE department around which everything else rotates. Budgets, spending plans and taxes are all inter-linked with the Treasury and the position of Chancellor of the Exchequer has always been one of the most powerful positions in the land. So why has the department lost its way? What is going on?
After the re...