20th Apr 2011 07:00
For immediate release on 20th April 2011
Candover Investments plc
Disposal of Candover Partners Limited and sale of a strip of investments
Candover Investments plc ("Candover") confirms the completion on 19th April 2011 of the two disposals announced on 6th December 2010 and approved by its shareholders on 22nd December 2010, namely:
* The sale of Candover Partners Limited, its wholly owned investment manager, to Arle Capital Partners LLP, a new private equity investment adviser; and * The sale of 29.1% of its portfolio of investments ("the Strip") to an entity backed by Pantheon and Arle.
It was announced on 6th December that the Strip disposal would generate approximately £60 million, before expenses, and before the exercise of tag rights by investors in respect of certain portfolio companies. Tag rights have been exercised in respect of Alma Consulting Group, resulting in the Strip consideration reducing by £0.4 million.
The Strip disposal mechanism also provided for Candover to sell, at cost, to the purchaser 29.1% of any follow-on investments made between 6th December 2010 and the date of completion. Follow-on investments totalling £17.2 million were made during this period, £16.6 million of which related to the refinancing of equity bridges in Parques Reunidos, resulting in a further £5.0 million being paid by the purchaser to Candover.
The net effect of the tag rights process and the sale of these follow-on investments have resulted in proceeds of £64.6 million being received by Candover, before expenses. As a consequence of both the Strip transaction and the follow-on investments referred to above, Candover's outstanding commitments to the Candover 2005 Fund now stand at £15.3 million, compared to £38.9 million at year end.
The disposals were undertaken in conjunction with the change in Candover's investment policy which came into effect after approval by shareholders in late December 2010. Candover's sole focus is now to optimise the long term value of the underlying investments in the portfolio for its shareholders via a progressive return of capital over time as portfolio realisations are made by the investment manager.
As announced in December 2010, following the completion of the disposals Gerry Grimstone has stood down as Chairman and retired from the Board, and Richard Stone, a non-executive director of the Candover Board for almost six years, has been appointed as Chairman in his place. A process to find a replacement non-executive director is well advanced.
For further information, please contact:
Candover
Malcolm Fallen, CEO +44 20 7895 2826
Tulchan
Peter Hewer +44 20 7353 4200
vendorRelated Shares:
CDI.L