VEALLS LIMITED (VELCP:ASX)

IRR: +17.6%

Holding Period: 6.0 Years

Commentary: 

Elevation Capital Value Fund initiated a position in Vealls Limited in December 2008. Vealls is one of the oldest listed companies on the ASX (listed in 1951). It is an investment company that is engaged in skifield operations (sold in November 2013), agriculture, forestry and investment in real estate and marketable securities. The founding Vealls family controls ~87% of the Company.  

Apart from cash which equated to greater than 50% of the market capitalisation for much of our holding period, the Company’s principal asset (before it was sold in 2013) was Cardrona skifield, the #1 beginner and intermediate skifield in New Zealand, an attractive and not replicable tourism / leisure asset in the South Island. Over many years, we engaged with management on a potential buy-out of the minorities or a capital return / liquidation strategy. On 12 February 2013, the Company announced plans to divest all assets and shift domicile to become an investment company based in Singapore. Once again, we engaged with management on an exit strategy for minority shareholders. We exited our position in December 2014 after a six-year holding period for a more than satisfactory return.

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