Majedie Investments : MAJE – changes to management arrangements

Majedie has appointed Majedie Asset Management as its sole investment manager and has decide to close its hedge fund business, Javelin Capital and redeem its £29.5m investment in Javelin Capital Emerging Markets Alpha Fund. Majedie Asset Management will purchase 10% of its share capital from Majedie Investments – reducing the fund’s interest in the asset management business to 18%. MAJE will get £18m for its stake – £900,000 more than the carrying value for the asset management business in MASJE’s accounts. MAJE will reduce its stake by a further 2.5% per annum over the next four years. The proceeds from the alpha Fund redemption will be reinvested in Majedie Asset Management’s Turquoise Fund – a long / short equity fund aiming to generate steady capital growth.

The changes will require shareholder approval and MAJE will be convening an extraordinary general meeting.

MAJE’s dividend will be cut – the Board expects to declare dividends totalling 7.5p per share in the current financial year ended 30 September 2014.

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