Freeport announces 23% drop in net asset value

Freeport, the troubled European factory outlet developer, has announced a 23% drop in net asset value in the wake of write-downs on two of its largest sites. The company is in talks with potential suitors including Kenmore, Carlyle and GI Partners over a possible takeover. Yesterday, Freeport confirmed the appointment of Iestyn Roberts, a former director of BAA McArthurGlen, as new chief executive. But the news failed to detract attention from the results. The stock dropped 13.75p or 3% – to close at £4.10 yesterday. Net asset value per share was revised to £3.35p (£4.25). Pre-tax losses were £51.2m (£3.1m) and no dividend will be paid. Total assets fell from £262.9m to £212.7m. References: Financial Times 07/10/06 page 21, The Times 07/10/06 page 58