RTTNews) - Monday, American Capital, Ltd. (ACAS: News ), private equity fund and alternative asset management company, reported loss for third quarter and has cancelled dividend for the remainder of 2008. In addition, the company said that it has proposed to acquire the remaining 32.3% of European Capital Ltd (ECAS.L) common stock.
The company's third quarter-loss in net assets resulting from operations was $548 million, compared to earnings of $21 million in the year ago quarter. Loss per share for the quarter was $2.63 per share, compared to earnings of $0.11 per share last year.
Net operating income for the third quarter broke even with $153 million in the comparable quarter. Net operating income per share was down to $0.74 per share, from $0.81 per share last year. Realized earnings for the quarter was down to $150 million or $0.72 per share, from $224 million or $1.18 per share a year ago.
Fourteen analysts polled by First Call/Thomson Financial estimated the earnings to be $0.69 per share.
Total operating income for the quarter decreased to $278 million, from $310 million in the comparable quarter. The Street estimated the revenues to be $264.98 million.
For nine months, loss in net assets resulting from operations was $1.4 billion, compared to earnings of $943 million last year. Loss per share was $7.06 per share, compared to earnings of $5.50 per share a year ago. Net operating income increased to $449 million or $2.22 per share, from $420 million or $2.45 per share, while total operating income decreased to $833 million, from $886 million in the year ago quarter.
American Capital said that it would not pay further dividends for the remainder of 2008 and that it intends to declare dividend for the $300 million of its 2008 remaining rollover taxable income by June 15, 2009, which would be payable by September 30, 2009.
Additionally, American Capital, which owns 67.7% of European Capital shares, said that it has entered into an implementation agreement with European Capital, to acquire the remaining of the ordinary shares of European Capital for a total consideration of $158 million.
As per the terms of the agreement, one ordinary share of European Capital would be traded for 0.333 American Capital shares of common stock. American Capital said, that European Capital stock was priced at $4.59 per ordinary share, based on the closing price of American Capital common stock as on November 7, implying a total market capitalization of $490 million and a total enterprise value of $2.0 billion.
The proposed acquisition, which is subject to approval of special majority of both company shareholders and Guernsey court approval, is expected to close in the first quarter of 2009.
ACAS stock closed Friday, at $13.77 on the Nasdaq.
ECAS.L stock is currently up 0.17 pence, trading at 1.90 pence on the London Stock Exchange.
by RTT Staff Writer |
