9th May 2019 14:28
LONDON (Alliance News) - EPE Special Opportunities Ltd said Thursday it will acquire GBP9.8 million in carried interest accrual in ESO Investments 1 LP.
EPE is acquiring GBP9.8 million in interest in exchange for 4.5 million shares, issued at 220.11 pence. The issue price represents a 22% premium to the company's closing price Wednesday.
Shares in EPE Special Opportunities were down 3.9% Thursday at 173.00 pence each.
ESO Investments 1 LP holds EPE Special Opportunities' indirect interests in lighting wholesaler Luceco PLC, coffee and tea retailer Whittard of Chelsea and online mail-order pharmacy Pharmacy2U.
The estimated net asset value of EPE Special Opportunities following the transaction is 241.32p per share.
EPE said the accrual interest represents an increase in value of ESO since its formation in September 2010. Since inception, ESO has realised cash proceeds of GBP99.0 million and an additional unrealised return of GBP51.4 million - which represents an internal rate of return of 29%.
EPE said the transaction will "maximise its long-term liquidity". "By satisfying the carried interest in ordinary shares of the company, EPE will retain the equivalent proceeds in cash when the relevant portfolio assets of ESO Investments 1 LP are sold. These proceeds will then be available to the company to re-invest, rather than being paid out to EPIC Private Equity LLP," the company said.
The transaction will also increase the company's long term alignment with its investment adviser EPIC Private Equity, EPE said.
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