28th Apr 2014 09:11
LONDON (Alliance News) - HgCapital Trust PLC Monday said it will re-invest in Nordic business software supplier Visma Group Holdings, as part of a GBP2.1 billion deal with investment firms KKR and Cinven.
The UK-based private equity investment firm said it will invest GBP405 million to raise its stake in Visma Group to 31%, valuing the business at a total enterprise value of GBP2.1 billion, following a decision by investment firm KKR to sell part of its majority holding in the group.
HgCapital initially invested GBP101 million in Visma back in 2006 through its HgCapital 5 Fund. However it sold a majority of its stake to KKR in late 2010, having received a substantial capital gain for its clients, with cash proceeds of GBP39.4 million returned to the trust.
HgCapital retained a minority 17% shareholding in 2010, and following a re-financing in 2013, received cash proceeds of a further GBP4.5 million.
HgCapital said Monday that its re-investment in Visma Group will return an estimated GBP40.7 million in proceeds the trust, which allows private and institutional investors to participate in HgCapital's investments, representing an uplift of GBP8.8 million over the valuation of GBP31.9 million in the net asset value as at March 31.
HgCapital said it will be a co-lead investor in the new investment, alongside KKR and Cinven, who will each hold 31%. The re-investment is via trust and the HgCapital 7 fund, while the HgCapital 5 fund is selling its remaining stake in full.
The trust said that completion of the transaction is subject to regulatory approval.
HgCapital Trust shares were up 1.3% at 1,026.85 pence per share Monday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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