Analysts at Stifel have said Electra's long-standing shareholders will be disappointed by the board's decision to migrate from an investment trust to a "corporate" structure as it concludes the first phase of its strategic review.
Announced this morning, the Electra board has decided to internalise all management functions by migrating the structure of the company to a 'corporate' one. The board said this will result in recurring expense savings in excess of £25m per year and eliminate carried interest on investments from June 2017, which amounted to £80m in the past 12 months. It will also lead to a reduction of the share price discount, allow for a flexible capital allocation policy focused on shareholder returns, improve the capacity to generate portfolio operating improvements, increase transparency, and im...
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