20th Aug 2020 12:16
(Alliance News) - HgCapital Trust PLC on Thursday noted that the Hg Saturn team and its investors have agreed to make an additional investment in tax software provider Sovos.
Hg, HgCapital Trust's manager, announced the Hg Saturn investment with TA Associates also joining as a significant minority investor.
As part of the deal, Hg's Genesis 7 Fund will sell its Sovos holding on terms not disclosed.
HgCapital Trust will invest around GBP40.8 million in Sovos, alongside other Hg clients through the Hg Saturn 2 Fund.
Additionally, HgCapital Trust is to realise around GBP139.2 million of cash proceeds on completion of the deal from the sale of Hg Genesis 7's investment and associated co-investment in Sovos.
This represents a 58% or GP51.2 million uplift over the carrying value of GBP88.0 million in the net asset value of HgCapital Trust as at March 31, around 13 pence per share.
Based on its March 31 NAV, following completion of the deal the trust's pro forma NAV is expected to be GBP1.02 billion or 248.4p per share.
In addition, HgCapital Trust's liquid resources available for future deployment are an estimated GBP251 million, representing 25% of pro forma March 31 NAV. The deal reduces HgCapital Trust's outstanding commitments to Hg transaction investments to around GBP867 million.
HgCapital Trust will release its interim results for the six months ended June 30 on September 14.
Shares in HgCapital Trust were up 3.0% at 255.00p in London at midday Thursday
Separately on Thursday, the company noted the sale of Citation Group, from which it will realise approximately GBP25.8 million.
Hg announced the sale of subscription-based human resources and employment law, health & safety, and ISO services provider Citation to private equity firm KKR & Co LP.
HgCapital Trust allows investors to participate in Hg investments and will realise cash proceeds of an estimated GP25.8 million once the deal is complete. This represents a 16% uplift of GBP3.6 million over the GBP22.2 million carrying value in the trust's March 31 net asset value, an increase of 1 pence per share.
By Anna Farley; annafarley@alliancenews.com
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