Listed private equity investor Electra Private Equity will make a £1bn (€1.15bn) dividend payment to shareholders. The sum represents £2,612 per share.
The decision follows a strategic review in autumn 2016 that saw the investor decide to sever ties with Epiris, then Electra Partners and until that point its exclusive manager, and move to a corporate structure.
“The notice of termination of Electra’s outsourced management contract has reduced the number of new investments being made and, with continued realisations, has resulted in the accumulation of significant cash,” Electra said. “The Board believes that it is best practice to return excess capital to shareholders”, it added.
Electra currently holds around £1.4bn of cash on its books, based on transactions announced.
Electra’s share price rose following the announcement. The dividend will be paid on 5 May to shareholders registered at close of business on 7 April.