Yesterday Trizechahn announced a provision of $178 million related to its investment in Global Switch. And it has written down the book value of its stake in the company to $38 million as at year-end 2001.
A terse statement from Chelsfield made it clear that it thinks the company is worth rather more. It pointed out that an independent valuation of Global Switch has already been commissioned, and said: The external valuation of the Global Switch properties is expected to exceed the figure implied by the TrizecHahn provision referred to in their announcement.' Chelsfield also pointed out that the terms of the joint venture include lock in and pre-emption rights in favour of each shareholder.
In its interim results for the six months ended 30 June 2001 Chelsfield was carrying its stake in Global Switch at £134 million ($190 million).
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