- Argo Group said certain funds it manages have agreed he sale of a significant investment they hold in Indonesia. Conditions were now met and its funds have received a part of the sale consideration with the balance due over the next two weeks.

The group says: "The disposal of the Indonesian investment improves the liquidity of the funds and creates an opportunity for further transactions with the same counterparty that could in the future mitigate the impact of the book value losses incurred by the funds as a result of the disposal.

"The disposal will allow the Funds to pay all outstanding management fees owed to AGL, these stand at $5.8m as of 30 September 2015, with the exception of fees due from the Argo Real Estate Opportunities Fund which is not party to the disposal."

AGL is a major investor in one of the funds, namely The Argo Fund. As of 30 June 2015, AGL's investment in TAF was valued at $13.8m. The disposal of the Indonesian Investment is not expected to have a significant impact on this valuation. Once the full sale consideration has been received by the funds, the board will consider a resumption of annual dividend payments and or a potential return of capital to shareholders via a share buyback subject to a review of AGL's future strategy and working capital needs.

At 8:08am: [LON:ARGO] Argo Group Ltd share price was -0.13p at 7p

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