It appears that Syndicate Asset Management may have been hit by Landsbanki’s attempts to sell shares owned by Aim-quoted investment company Equity Special Situations Ltd.
Syndicate Asset Management is a private client wealth manager and institutional fund manager that has grown by acquisition. These acquisitions include Savoy Asset Management. SAM joined Aim via an introduction on 23 September 2005.
SAM shares have slumped 7p to 13.5p each on the day, giving the fund manager a value of £17.9m. One week ago the shares were trading at 80p so they have fallen 83% in seven days.
On 10 October ESS, which has stakes in 13 quoted companies including SAM, obtained an interim injunction in order to stop Landsbanki selling “certain shares owned by ESS”. The shares were held by Landsbanki as security for a long-term loan facility for ESS.
The injunction says that Landsbanki “shall not sell or otherwise deal with or dispose of or charge or pledge or part with possession, custody or control of any of the shares” owned by ESS.
However, ESS has asked for its shares to be suspended because it says that it can’t be sure whether Landsbanki still holds the shares or it has disposed of them. The net asset value of ESS is difficult to calculate given this uncertainty.
Shares in ESS fell 5p to 237.5p prior to their suspension.
Teathers, the renamed Landsbanki, is SAM’s nominated adviser and broker.
One thing is for sure, SAM shares have dived over the past week because of what has been described as one aggressive seller. SAM has around £6bn under management.
SAM’s stated net asset value was £57.7m at the end of March 2008. That is nearly three times its current market value. SAM has made two acquisitions since then.
Net debt and deferred consideration was £6.3m at the end of March 2008.
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