Electra Private Equity (ELTA): Innovating, rest...

Edison Investment Research Limited Electra Private Equity (ELTA): Innovating, restructuring and realising 17-Dec-2020 / 08:50 GMT/BST London, UK, 17 December 2020 Electra Private Equity (ELTA): Innovating, restructuring and realising Electra Private Equity (ELTA) has been following a realisation strategy since October 2016, when it had a market cap of c £1.7bn, and has since returned £2bn to shareholders. Despite this strong record, the shares currently trade at a 22% discount to NAV. In 2018, the board embarked on a major operational enhancement programme across the remaining three key portfolio assets: TGI Fridays, Hotter and Sentinel, installing new management teams in 2019. ELTA's team has identified significant earnings potential from operational initiatives, which on applying peer and sector multiples translates into significant valuation upside of up to 175% above the current NAV. ELTA is well placed to realise the remaining assets in 2021 and generate attractive shareholder returns before the company's subsequent wind up. ELTA's shares trade at a c 22% discount to the last-reported NAV per share of 353.4p. The average last three years' discount of c 39% reflects the realisation strategy and restructuring efforts around realisation of the remaining three key companies, up until the management at all three was changed in 2019. The discount has recently narrowed materially, after the company confirmed the engagement of Stifel Nicolaus Europe in the sale of Hotter on 13 November 2020.  Click here to view the full report. Subscribe to Edison's content to receive reports by email. All reports published by Edison are free-to-access and available on the website. About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information please contact Edison: Victoria Chernykh, [phone] Richard Finch, [phone] [e-mail] Learn more at www.edisongroup.com and connect with Edison on:  LinkedIn  www.linkedin.com/company/edison-group- Twitter   www.twitter.com/Edison_Inv_Res YouTube   www.youtube.com/user/EdisonITV/videos Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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