Prospect Japan Fund Net Asset Value Drops As Takeover Talks Continue
[ 22 Mar 2017 10:54 ]
LONDON (Alliance News) - Prospect Japan Fund Ltd said Wednesday its net asset value dropped in 2016, as it continues talks over a possible sale of the company.
Prospect Japan reported its net asset value per share dropped to 123.70 US cents at the end of 2016 from 136.62 US cents at the end of 2015.
Shares in Prospect Japan were untraded at USD1.18 Wednesday morning.
The fund said the 9.5% decline in its net asset value was "disappointing" compared to an 8.2% increase in the MSCI Japan Small Cap Index over the same period.
Major contributors to the underperformance included the fund's holding in Daito Bank, a regional lender in the Fukushima region, which saw its share price hit by the Bank of Japan's negative interest rate policy. The Daito Bank investment comprises 24% of the fund's assets.
Another major detractor was nutrition and personal care product company Shaklee Global Group, due to sluggish revenue and profit from Asian operations and negative impact on exports from the strong yen. The Shaklee investment comprises 7.1% of the fund's assets.
Prospect Japan's holdings are heavily concentrated in just nine investments, with 51% of its investment portfolio held in two firms, Daito Bank and Fukushima Bank.
Prospect Japan said it remains in talks over a possible takeover offer from Toyko-listed Prospect Co Ltd, the parent company of its investment manager. The offer under discussion offers 2.5 Prospect shares in exchange for each share in the fund.
"The board will assess any offer in relation to the takeover of the company in light of our objectives, which are to maximise share value, minimise or eliminate discount to NAV and improve the liquidity of our shares," said John Hawkins, chairman of Prospect Japan.
By Adam Clark; adamclark@alliancenews.com
Copyright 2017 Alliance News Limited. All Rights Reserved.
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Prospect Japan Fund Net Asset Value Drops As Takeover Talks Continue
[ 22 Mar 2017 10:54 ]
LONDON (Alliance News) - Prospect Japan Fund Ltd said Wednesday its net asset value dropped in 2016, as it continues talks over a possible sale of the company.
Prospect Japan reported its net asset value per share dropped to 123.70 US cents at the end of 2016 from 136.62 US cents at the end of 2015.
Shares in Prospect Japan were untraded at USD1.18 Wednesday morning.
The fund said the 9.5% decline in its net asset value was "disappointing" compared to an 8.2% increase in the MSCI Japan Small Cap Index over the same period.
Major contributors to the underperformance included the fund's holding in Daito Bank, a regional lender in the Fukushima region, which saw its share price hit by the Bank of Japan's negative interest rate policy. The Daito Bank investment comprises 24% of the fund's assets.
Another major detractor was nutrition and personal care product company Shaklee Global Group, due to sluggish revenue and profit from Asian operations and negative impact on exports from the strong yen. The Shaklee investment comprises 7.1% of the fund's assets.
Prospect Japan's holdings are heavily concentrated in just nine investments, with 51% of its investment portfolio held in two firms, Daito Bank and Fukushima Bank.
Prospect Japan said it remains in talks over a possible takeover offer from Toyko-listed Prospect Co Ltd, the parent company of its investment manager. The offer under discussion offers 2.5 Prospect shares in exchange for each share in the fund.
"The board will assess any offer in relation to the takeover of the company in light of our objectives, which are to maximise share value, minimise or eliminate discount to NAV and improve the liquidity of our shares," said John Hawkins, chairman of Prospect Japan.
By Adam Clark; adamclark@alliancenews.com
Copyright 2017 Alliance News Limited. All Rights Reserved.