Craven House Capital PLC Coronavirus and Business Update (4609I)
April 01 2020 - 9:39AM
UK Regulatory
TIDMCRV
RNS Number : 4609I
Craven House Capital PLC
01 April 2020
Craven House Capital plc
("Craven House" or the "Company")
Coronavirus and Business Update
The coronavirus pandemic is likely to cause a material impact on
the carrying value of Craven's portfolio. This cannot yet be
quantified given the present level of uncertainty regarding the
prospective mid-to-long term impact of the measures needed to
control transmission. However, the valuations of Craven House
Angola Lda and Qeton Ltd (currently valued at $7.9m and $0.3m
respectively) will be materially impacted as a result of the recent
shock to oil prices and the likely knock-on effect this will have
on the Angolan economy in which both of these subsidiaries are
active.
Similarly, a core investment owned by Craven House Capital North
America LLC (valued at $5.9m as of November 2019) is IIU Inc,.
which sells medical insurance for international travelers and has
experienced an almost total collapse in its revenues in recent
weeks. It is likely, given the far-reaching impact of the pandemic,
that valuations across Craven's portfolio will be significantly
impaired.
The valuation of DLC has decreased by $1.6m to $2.3m as a result
in a drop in the mark-to-market valuation of the shares on the 1
April vs 30 November and the weakening of the Canadian Dollar vs.
the US Dollar. Whilst the share price reduced from CAD$0.12 to
CAD$0.07 during this period, there has been no deterioration in the
valuation of the underlying holdings of DLC and management believes
that the end of period share price represents a significant
discount to the orderly liquidation value of DLC.
In the view of the Board, current events have had no material
impact to date on the valuation of the Company's e-commerce
businesses acquired on 13 March 2020, however this will continue to
be evaluated in the coming weeks
Ends
For further information please contact:
Craven House Capital Plc Tel: 0203 286 8130
Mark Pajak
www.Cravenhousecapital.com
SI Capital Tel: 01483 413500
Broker
Nick Emerson
www.sicapital.co.uk
About Craven House Capital:
The Company's Investing Policy is to invest in or acquire a
portfolio of companies, partnerships, joint ventures, businesses or
other assets globally in any geographic jurisdiction. The company
will invest in both developed and developing markets providing long
term patient capital and is often involved in special situations,
restructuring, expansion and turn around investments in crisis and
transitioning economies.
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London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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