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This follows the receipt of $1.1 million from an earlier sale of a 10% stake in the company announced in January 2012
Both sales have been to the Sattva Business Group which now owns 74 per cent of the Company. The sale reduces Eredene's stake in the Company to 16 per cent.
As a part of the on-going strategy to realise assets and return capital to shareholders, Eredene Capital PLC, the AIM quoted investor in Indian infrastructure, today announces the receipt of $1.9m for the sale of its 23 per cent stake in the Company, through its subsidiary Ennore Mauritius Limited, to Sattva Hi-tech and Conware Private Limited, part of the Sattva Business Group.
Sattva CFS, located in Vichoor and servicing the busy port of Chennai, was Eredene's first investment in the sector in 2007. The business has been developed from a greenfield site to become dividend paying within two years. Its latest results for the year to March 31, 2014 showed pre-tax profits of ?1.2 million.
The $1.9m sale proceeds will be retained until further significant asset realisations have been achieved when another return of capital to the shareholders will be considered.
The carrying value of Eredene's 23 per cent stake in the Company was $2.24 million being the proportionate fair value of Eredene's investment in Sattva CFS & Logistics as at September 30, 2013 as disclosed in the Interim Results announced in December 2013.
The directors value the remaining 16 per cent stake at a fair value of $1.25 million. The fair value of the entire investment portfolio as at March 31, 2014 will be provided upon the release of Eredene's Annual Results which is expected by mid-August 2014.
