TVC to return €50m to investors

Investment company TVC Holdings has said that it will continue to look for acquisition and investment prospects, in the €10m-€20m range, despite seeing a dearth of opportunities of late.

Shareholders formally approved TVC’s previously mooted special dividend payment plan yesterday, which will see €50m of surplus cash returned to investors.

Speaking after the firm’s AGM and EGM in Dublin, yesterday, TVC’s executive chairman, Shane Reihill said that “the maximisation of shareholder value” continues to be the company’s main ethos.

The return of funds — via a 49.5c per ordinary share special dividend (which will be paid in September) — was proposed by management, earlier this year, after no new investments had been made and having €80m of surplus cash was deemed not to be in shareholders’ best interests.

While TVC saw its pre- tax profits dip, in its last financial year, from just over €9m to €6.6m, the company is in a healthy state, with net assets of €72m (mainly comprising its 18% stake in UTV Media) and no debt.

Although the company has sold a number of its investments — most notably its stake in anti-financial fraud software company, Norkom Technologies — in the past two years; it has seen “a very limited number of investment opportunities” and, despite running the rule over a number of prospects, has chosen not to make any more acquisitions.

“After considering a range of strategic and financial options to enhance shareholder value, the board has decided to return the €50m of cash generated by TVC to our shareholders,” Mr Reihill said.

That move was passed by 100% of TVC’s shareholder base, yesterday.

Mr Reihill added that management’s “selective investment approach” remains the correct strategy for the company.

“TVC’s management has extensive experience of complex restructuring and turnaround transactions, and we will continue to look for value-enhancing opportunities while managing our existing portfolio of investments.

“The company will continue to deliver on its strategy of maximising value for all our share-holders,” he said.