18th Nov 2010 07:00
For immediate release on 18 November 2010 Candover Investments plc - Interim Management Statement
Candover Investments plc ("Candover" or the "Company") today issues its Interim Management Statement in accordance with FSA Disclosure and Transparency Rule 4.3. This statement which, as usual, is unaudited, relates to the period from 1 July 2010 to the date of this announcement.
Portfolio valuation and performance
Candover's investment portfolio was last valued as of 30 June 2010. At that date the net asset value per share at that date was 903p. Since that date, a number of follow-on investments have been made in investments held by the Company, and the Company's manager, Candover Partners Limited (Candover Partners), has entered into agreements to sell two investments on behalf of Candover and funds managed by Candover Partners. These transactions are summarised below.
The next valuation of the Company's assets will be conducted as of 31 December 2010. Consistent with its valuation policy the Company will continue to apply earnings based valuations to portfolio businesses and will appropriately value the carried interest of the Company in the funds.
The portfolio continues to show signs of stabilisation in what remains an uncertain trading environment. Of the continuing top ten investments*, six are trading ahead at the earnings level, or are comparable to the prior year, on a rolling 12 months basis.
Follow on investments and realisations
Since 30 June 2010, Candover has invested a total of £34.2 million in follow on transactions, which break down as follows:
* £1.5 million in Expro to support the acquisition of Production Testers International, an Asian based oilfield services company; * £2.2 million in DX Group as part of a balance sheet restructuring; * £2.4 million in EurotaxGlass's as part of a balance sheet restructuring; * £6.8 million in Hilding Anders to repay debt and an acquisition finance facility; and * £21.3 million in Technogym to repay a debt facility put in place at the time of the original acquisition.
Candover Partners Limited has agreed two realisations since the 30 June 2010, namely Ontex for an enterprise value of €1.2 billion and Equity Trust for an enterprise value of €350 million. These realisations will result in combined total proceeds for Candover of £46.2 million.
The sale of Ontex, which has now received the necessary regulatory clearances, is expected to complete by the end of November 2010. The sale will generate initial estimated cash proceeds for Candover of £16.4 million, including £4.6 million of carried interest. A guaranteed, interest accruing, deferred payment, will result in further proceeds to the Company currently valued at £7.1 million which will be payable between completion and September 2012. The carried interest from this deferred payment will return an additional £2.8 million. Total estimated proceeds to Candover will therefore be £26.3 million. The sale price of Ontex is in line with 30 June 2010 valuations.
The sale of Equity Trust is also subject to regulatory approvals and is also expected to complete by the year end. This sale will generate estimated cash proceeds of £19.9 million, including carried interest for Candover. The cash proceeds include an initial payment of £13.0 million and a guaranteed deferred payment of £6.9 million, payable no later than 30 June 2011. The sale price presents a 24% uplift to the valuation of the business as at 30 June 2010.
Outstanding commitments
As at 30 June 2010, the Company had outstanding commitments of £72.7million which have now been reduced by £34.2 million to £38.5 million as a result of the follow on transactions noted above.
Ends.
* Top ten investments now exclude Ontex and Equity Trust and include Hilding Anders and Technogym
For further information, please contact: Candover Investments plc +44 207 489 9848 Philip Price, General Counsel and Company Secretary Tulchan Communications LLP +44 207 353 4200 Susanna Voyle
vendorRelated Shares:
CDI.L