Crystal Amber Fund in talks with potential buyers

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Crystal Amber Fund Limited (AIM:CRS) said it is in talks with potential buyers after its major shareholder called for a winding up of the fund.


The activist fund’s 25% shareholder Saba Capital Management informed Crystal Amber in July that it will vote against the continuation of the fund at November’s annual meeting, which as the vote requires 75% backing would mean it would not pass.


Investment manager Crystal Amber Asset Management’s primary focus has been “to position the fund’s strategic holdings to appeal to trade or financial buyer”, the fund said in the statement accompanying its final results for the year to end-June.


In recent months, the manager has begun discussions with “a number of potential buyers”, it added.


The results showed the fund’s asset value was 146.81p at the end of June, up 38.5% over the year and 14% over two years.


The UK activist fund was pleased with progress at holdings De la Rue, GI Dynamics, Equals and Allied Minds (LSE:ALM), but took legal action against Hurricane Energy, including forcing board changes and legal action against the proposed financial restructuring, which it said saved $22mln of capital and interest.


The fund has also publicly criticised and pushed for change at Allied Minds (LSE:ALM), saying it has lost confidence in the chairman after the poor handling of its investee companies.


During the half-year, the fund sold out of holdings including Redde Northgate, STV Group and Kenmare Resources after deciding that it had completed its activist strategy or on revaluation.

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