Resolution Ltd., the U.K. holding company founded by Clive Cowdery to buy financial assets, posted a fourth-quarter operating loss as it didn’t complete any transactions in its first three months of operations.
The net loss was 700,000 pounds ($1 million) for the period from Oct. 9 to Dec. 31, the Guernsey-based company said today in a statement. Resolution, which raised 660 million pounds from its IPO last month, said total invested cash at Dec. 31 was 652.6 million pounds.
Cowdery plans to buy assets from insurers and money managers as the credit crisis forces them to raise capital. Aviva Plc, Prudential Plc, and Legal & General Plc, the U.K.’s three biggest insurers, together own about 20 percent of Resolution, which is Cowdery’s second venture into the buyout market for financial assets. He sold the first, also called Resolution, to Pearl Group Plc last year for 5 billion pounds.
“A number of possible acquisitions are under evaluation for 2009,” Chairman Michael Biggs said in the statement. “Our objective is to unlock value through acquisitions and restructuring in the U.K. and western European financial services.”
Resolution declined 0.5 percent to 105 pence, giving the company a market value of 630 million pounds. The stock has dropped 5.4 percent this year.
Resolution said it plans to offer new shares in the company to the shareholders of “target companies who wish to benefit from the value that is expected to be released from Resolution’s restructuring capabilities.”