Other Past Investments
Holyman Limited.- sold in 2000
In the late 1990s this marine company experienced major losses and its share price fell from $5.00 to 35 cents and new management installed. London City recognised the company as a long term low cost “buy”. Within six months two transport groups fought a takeover battle for Holyman, the final price paid was $1.08 per share. London City assisted the Holyman defence.
Tranzact Financial Services Limited – 8% owned until taken over in January 2014
London City became interested in Tranzact some six years after that company became part of the New Zealand Grosvenor group. In 2012 London City underwrote for Tranzact its Dividend Reinvestment Plan and became a significant and supportive shareholder. In late 2013 Grosvenor opted to bid for the 40% ownership not owned. London City rejected the price and sought Takeover Panel support, ultimately accepting the offer.
Penrice Soda Holdings Limited – 8% then sold off in 2012-13
During 2008 London City acquired an 8% “cornerstone” investment in this Adelaide group with the support of its Board. . Within six months serious issues became apparent and attempts to gaion board representation failed. The company has collapsed and went into liquidation in 2014. Some $270 million was lost by investors and the banks. London City is pursued legal action in the Supreme Court of NSW against the Penrice auditors, Ernst & Young and a confidential settlement took place in late 2021.
Coffey International – 2% sold in 2016
A growing shareholding was being acquired in this international engineering service and development aid management group that was undergoing resuscitation. Investment sold in early 2016 by a takeover for a 50% gain.
Cash on Deposit
An important part of London City’s strategy is not to risk capital losses by always placing monies on deposit with organisations offering tempting high interest rates. London City’s cash funds are held by leading Australian trading banks at safe, but realistic, interest rates.
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