17th Oct 2008 11:30
For immediate release on 17th October, 2008 The information contained herein is not for publication or distribution to persons in the United States of America. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold without registration thereunder or pursuant to an available exemption therefrom. Any public offering of securities to be made in the United States would have to be made by means of a prospectus that would be obtainable from the issuer or its agents and would contain detailed information about the issuer of the securities and its management, as well as financial statements. Neither this document nor the information contained herein constitutes an offer to sell or the solicitation of an offer to buy any securities. These materials do not constitute an offer of securities for sale in the United States. No money, securities or other consideration is being solicited, and, if sent in response to the information contained herein, will not be accepted. Candover Investments plc - Interim management statement This interim management statement is issued in accordance with Rule 4.3 of the FSA's Disclosure and Transparency Rules and relates to the period from 1st July, 2008 to 16th October 2008. Environment The recent events in the banking market and the resulting downturn in stock markets worldwide will clearly affect Candover. Whilst the majority of our portfolio companies are trading in line with or ahead of last year, we are beginning to see the effects of the economic slow down. This, together with the reduction in the trading multiples of comparable quoted companies, will put pressure on the year end valuations. We are working closely with our portfolio companies as they take proactive measures to limit the impact of the downturn. We continue to expect a low level of investment and realisation activity over the next 6 to 12 months due to market conditions and the limited availability of debt financing. However, we are confident that we will see interesting investment opportunities once markets have stabilised. Net asset value per share Candover's investment portfolio, which comprises both direct investments and investments made alongside funds managed by its wholly-owned subsidiary, Candover Partners Limited, was last valued (on an unaudited basis) as at 30th June, 2008. The unaudited net asset value per share as at 30th June 2008 was 2051p. Investment activity There have been two new investments since 1st July. Candover and the 2005 Fund invested ‚£141.8 million for a significant minority stake in Technogym. Candover's share was ‚£19.8 million. Technogym is a global leader in the design, production and marketing of premium fitness equipment and wellness products which serves the major fitness club chains, as well as professional customers in the hospitality, corporate, education, medical and military markets. In addition, as part of a consortium, Candover and the 2005 and 2008 Funds acquired Expro International, which provides products and services to commission, measure and improve the flow management of oil and gas wells. Their total investment, following syndication, was ‚£409.8 million, of which Candover's current share is ‚£69.5 million. Two follow on investments have been completed in existing portfolio companies: * ‚£0.7 million in Equity Trust, alongside ‚£5.8 million from the 2001 Fund to fund the acquisition of a stake in Custom House; and * ‚£3.8 million in Wood Mackenzie, alongside ‚£29.9 million from the 2001 Fund to fund the acquisition of Brook Hunt. 2008 Fund In March 2008 Candover Partners announced its intention to raise a new fund, the Candover 2008 Fund, with a target of ¢â€š¬5.0 billion. On 26th August, we had a first closing with commitments of ¢â€š¬2.8 billion, including a commitment from Candover Investments plc of ¢â€š¬1.0 billion. Other activities In August, Candover opened an office in Mumbai and announced the establishment of a new team to focus on opportunities in Eastern Europe. Both of these ventures are part of a commitment to explore investment opportunities in new and rapidly growing economies, and follow the opening of a Hong Kong office in February. Ends. For further information about Candover please contact: Andrew Moberly, Company Secretary a.moberly@candover.com +44 20 7489 9848 Note: This statement aims to give an indication of material events and transactions that have taken place during the period from 1st July, 2008 to 16th October 2008 and their impact on the financial position of Candover Investments plc. These indications reflect the Board's current view. They are subject to a number of risks and uncertainties and could change. Factors which could cause or contribute to such differences include, but are not limited to, general economic and market conditions and specific factors affecting the financial prospects or performance of individual investments within Candover's
portfolio.
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