Dawnay, Day Treveria in talks with investor for equity injection

Dawnay, Day Treveria (DDT), the AIM-listed investor in the German retail property, has ruled out a possible sale of the entire company as a way to maximise shareholders value because of challenging market conditions. The company said on Monday it will consider other options to boost share performance, including a strategic review of its debt facilities 'in light of increased susceptibility to valuation swings due to the relatively high levels of gearing’. DDT added that it is in talks with an unnamed party for a possible injection of new equity into the business.

It said: 'We are currently working with one preferred party to underwrite this possible injection of equity and discussions are continuing on the details of this proposal, which will include negotiating amendments to certain loan terms.'

DDT said in June it hired JP Morgan Cazenova to carry out a strategic review that could lead to the possible sale of the entire company as a result of the poor performance of its shares, which have been trading at substantial discount to net asset value for some time.

Additionally, DDT said it would seek shareholders' approval to change the company name in an attempt to distance itself from Dawnay Day, the troubled property and financial services empire created by entrepreneurs Peter Klimt and Guy Nagger. The German investor reported a loss before tax of EUR 111mln for the six months ended in June 2008, which compares to a profit a year earlier of EUR 49.5mln.

DDT, which owns a portfolio of EUR 2.2bn, has also decided to temporarily suspend dividend payments.