ARGO Group Limited Re: Disposal of Indonesian Investment (7725B)
October 09 2015 - 3:00AM
UK Regulatory
TIDMARGO
RNS Number : 7725B
ARGO Group Limited
09 October 2015
ARGO Group Limited
Argo Group Limited ("Argo" or "the Company")
Re: Disposal of Indonesian Investment
Argo Group Limited ("AGL"), the independent alternative
investment manager offering a multi-strategy platform for investing
in global emerging markets, announces that certain funds it manages
("Argo Funds" or "the Funds") have reached an agreement for the
sale of a significant investment they hold in Indonesia
("Indonesian Investment"). The transaction conditions precedent are
now fulfilled and the Funds has received a part of the sale
consideration with the balance due over the next two weeks.
The disposal of the Indonesian Investment improves the liquidity
of the Funds and creates an opportunity for further transactions
with the same counterparty that could in the future mitigate the
impact of the book value losses incurred by the Funds as a result
of the disposal. The disposal will allow the Funds to pay all
outstanding management fees owed to AGL, these stand at USD 5.8m as
of 30 September 2015, with the exception of fees due from the Argo
Real Estate Opportunities Fund which is not party to the disposal.
AGL is a major investor in one of the Funds, namely The Argo Fund
("TAF"). As of 30 June 2015, AGL's investment in TAF was valued at
USD 13.8m. The disposal of the Indonesian Investment is not
expected to have a significant impact on this valuation.
Once the full sale consideration has been received by the Funds,
the Board will consider a resumption of annual dividend payments
and or a potential return of capital to shareholders via a share
buyback subject to a review of AGL's future strategy and working
capital needs.
9 October 2015
Enquiries:
Argo Group Limited
Andreas Rialas
020 7016 7660
Panmure Gordon
Dominic Morley
020 7886 2500
This information is provided by RNS
The company news service from the London Stock Exchange
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