Aim-quoted activist investor Crystal Amber Fund has increased its stake in cash shell NBNK Investments, which is trading at a discount to its cash, to 6.26%.
Crystal Amber’s stake went above 3% last November and the share price has declined since then.
WL Ross subscribed for shares in NBNK at the beginning of 2013 and it has been seeking an acquisition in the financial services sector. NBNK had given up trying to buy UK banking assets but it will widen its search for acquisitions to include financial and insurance businesses in Continental Europe. The fundraising at 39p a share added £906,000 to NBNK’s bank account after the costs of buying back £4.82m worth of shares at the same price. There was a cash outflow from operations of £210,000 during 2013.
At 28.5p a share, NBNK is valued at £15.3m and by the end of 2013 the cash shell had £20.2m in the bank. This means that the shares are trading at a discount to cash of nearly one-quarter.
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