News blog

SovGem

  • BY: Andrew Hore |
  • POSTED: 29/08/2007 |

Investment company SovGem continues to grow its net asset value and it is looking at ways to raise more cash to invest. 

The net asset value increased by 18% to 33p a share in the first six months of 2007. Admittedly, the market has fallen since then but the current NAV, at 28.97p a share, is still 4% higher than at the start of the year.

There has been a sharp fall in the ReneSola share price in recent months and other investments have fallen in value. The current state of the market makes it uncertain whether any of SovGem’s unquoted investments planning to float will go through their plans.

SovGem has limited funds and it has already invested some of the £522,000 in the bank at the end of June. It is considering borrowing money but it wouldn’t want its gearing rising above 20%. That suggests potential borrowings of around £1.25m at the present NAV. Management is looking at other options but it is keen to minimise any dilution. Redeemable ordinary shares are being considered.

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