The disagreement between the shareholder and portfolio advisors of Trikona Trinity Capital PLC continues.
In its latest filing with the London Stock Exchange, Trikona Trinity has said, its advisor, Trikona Advisors Ltd (TAL), has disputed its termination as portfolio manager and denies any material breaches of the terms of the portfolio management agreement (PMA).
An e-mail sent to Trikona Advisors, seeking comments on the development, did not elicit a response at the time of filing this story.
In December last year, Trikona Trinity, the AIM-listed real estate fund focused on India, said, it would terminate the PMA effective March 16 of this year citing “breaches”.
Trikona Trinity has also appointed Rothschild (as lead adviser) and DTZ (as co-adviser) to look for a new portfolio manager. In December, it appointed Arvind Pahwa, formerly the head of Indian Real Estate for JP Morgan Asset Management, as a non-executive director.
TAL has said, it will seek to recover substantial damages if Trikona Trinity goes ahead with the termination. In an earlier statement, TAL said, it will be owed substantial sums of performance and management fees by Trikona Trinity and will pursue claims as and when necessary.
Trikona Trinity said, it plans to continue with the termination and will resist any claims from TAL. It added that now Trikona Trinity plans to finalise its claims against TAL.
This development comes as Trikona Trinity and TAL both are facing a of €116 million ($168 million) from a large German investor called SachsenFonds Holdings GmbH.
Trikona Trinity had entered into a number of transactions with SachsenFonds to divest its stake in various portfolio companies.