LISTED INVESTMENT vehicle TVC Holdings is seeking to exploit the opportunities presented by low share values by buying into small quoted companies.
Speaking yesterday at the publication of TVC's first set of annual results as a public company, executive chairman Shane Reihill said the firm had more than €47 million in cash and was actively looking at opportunities to invest this. "We are looking at taking stakes in small-cap plcs in the range of €15 million to €20 million," he said.
Mr Reihill added that TVC was considering opportunities in both the Irish and British markets.
Chief executive John Tracey said TVC was looking for specific types of transactions, where a bid for a sizeable stake would not necessarily force up the share price. He said this could include companies that needed capital or situations where a shareholder needed to sell.
As with other small quoted companies, TVC's share price has suffered since the start of the year. At its year-end on March 31st last, it was trading at a discount of 76 per cent to the actual value of its holdings. Net assets on March 31st were €141.4 million.
Mr Reihill said TVC's institutional shareholders had not sold any shares, and suggested that the weakness in price was down to trades by private investors.
The results posted yesterday cover 15 months to the end of March last. At flotation in July last year, TVC's shares were valued at €1.34. At its year-end, they were priced at €1.24. This represented a fall of €9 million in the value of its investments. Yesterday Mr Reihill said €8 million of this was due to the fact that the share price of its biggest investment - technology company Norkom - was €1.36 at close of business on March 31st, down from €2.05 at TVC's flotation.
The euro's strength against the dollar and sterling was responsible for the other €1 million. TVC led the consortium of Pat McCann and Davy Private Clients that last year bought 11 Comfort Inn and Quality hotels in Ireland for €41.5 million. TVC's shares fell six cent to close at 92 cent yesterday.
