TVC in prime position to consider new investments, claims chief
Published 08/07/2011 | 05:00
Investment holding company TVC is in "a prime position" to consider new investments at attractive valuations, its executive chairman Shane Reihill said.
The company, which is 21pc owned by Mr Reihill, owns stakes in companies such as broadcaster UTV and hotel group Maldron.
Earlier this year, Dublin financial software firm Norkom, in which TVC had almost a 29pc stake, was sold to BAE Systems for €217m. That resulted in a profit of €11m for TVC and represented a return 2.8 times larger than the original cost to the investment company.
However, speaking after TVC's AGM in Dublin yesterday, Mr Reihill said the Irish economy remained "dismal" and that he saw few, if any, immediate acquisition prospects on the horizon.
He said there were two or three potentially substantial transactions the company had looked at but deals didn't materialise, adding the group was open to most sectors, excluding biotechnology and property.
"We're focused on corporate restructuring opportunities. We're hopeful that after the banks are recapitalised corporate activity begins to move," he said.
He added the strength of TVC's balance sheet put the company in a prime position to consider new investments at attractive valuations.
TVC has a net asset base totalling €106m, with its cash balance of €72m -- which includes German bonds -- and its shareholding in UTV accounting for 91pc of that. Its holding in Maldron and in three small unquoted software companies comprises the remainder. The company trades at about a 26pc discount to its book valuation.
TVC made a profit before tax attributable to equity shareholders of €11.6m in the year ended March 31 of this year.