TVC looking to build portfolio

TVC HOLDINGS is hopeful that the passing of the end of July deadline for the banks to meet their latest recapitalisation targets will create a more active investment market.

The Dublin-headquartered investment specialist — which owns an 18% stake in UTV and a 29% holding in the Maldron Hotel group — is on the lookout for more opportunities, as it ultimately looks to build a small portfolio of high-profile investments.

The sale of its stakes in Norkom Technologies and APT Licensing, in the past 12 months, has given TVC a warchest of around €30m to play with.

Addressing shareholders at the group’s annual general meeting in Dublin yesterday, executive chairman, Shane Reihill said that TVC is well-placed to benefit from movement in the market, but added that nothing is moving at present.

“As many companies experience difficult trading conditions and come under increasing pressure to raise equity from new investors, we expect the number of restructuring opportunities in Ireland and the UK to increase over the next 12 months — particularly as banks focus on resolving problems within their corporate portfolios,” Mr Reihill said.

“We, therefore, believe the strength of our balance sheet, plus the extensive experience of management puts TVC in a prime position to consider new investments at what we expect will be attractive valuations, adding further value to our investment portfolio and maximising value for our shareholders,” he added.

TVC recently reported a €20m drop in pre-tax profits — to €8.8m — for the 12 months to the end of March, but added that its net asset value rose by nearly €3m to €106m and it attained debt free status.

Mr Reihill said yesterday the investment market is being held up by banks still reviewing their corporate transaction flows. He added that there remains “a huge gap” between buyers’ and sellers’ perception of value, but that TVC would continue to look at restructuring opportunites that may arise.