Disposal

RNS Number : 1399N

India Capital Growth Fund Limited

26 August 2011

 



26 August 2011

India Capital Growth Fund Limited (the "Company")

(a closed-ended investment company incorporated with limited liability under the Laws of Guernsey with registered number 43916)

Disposal of unlisted investment

The Company announces that its wholly owned subsidiary ICG U Limited has disposed of the whole of its interest in the unlisted Marwadi Shares and Finance Limited ("MSFL") to Amber 2010 Limited, a wholly owned subsidiary of Caledonia Investments plc for an aggregate consideration in cash of £4.47 million equivalent to a price of INR 200 per MSFL share.  The carrying value of the holding at 31 December 2010 (the date of the last audited accounts) was £4.63 million equivalent to a price of INR 190.84 per MSFL share.  Subsequent published Net Asset Values have maintained this holding at a value based on INR 190.84 per MSFL share.  The holding represented 8.35% of the Group's net assets at 31 December 2010 and 9.6% at 31 July 2011. It is intended that the proceeds will be redeployed in investment in Indian listed securities in accordance with the Company's declared investment policy and in line with the Company's increased focus on liquidity within the portfolio.  

As Caledonia Investments plc is a material shareholder in the Company and the parent company of the Investment Manager the transaction is with a Related Party under the AIM Rules.  The price at which the transaction was effected was based on an independent appraisal of value carried out on the joint instructions of the parties.  Mr Jamie Cayzer-Colvin, as a director of both the Company and Caledonia Investments plc has not participated in the decisions of the Board in relation to the transaction.

In accordance with Rule 13 of the AIM Rules, with the exception of Mr Jamie Cayzer-Colvin who is involved in the transaction as a related party, the directors of the Company consider, having consulted with the Company's nominated adviser, that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

Enquiries:

Andrew Maiden

Northern Trust International Fund Administration Services (Guernsey) Limited, Company Secretary

[phone]

Philip Secrett/Jen Hatter

Grant Thornton UK LLP, NOMAD

[phone]

 

END

 

 

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