6th Apr 2009 14:29
Press release For immediate release on 6th April 2009 Candover Investments plc - Interim Management Statement
The information contained herein is not for publication or distribution to persons in the United States of America.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 ("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 three month period from from 1st January, 2009 to 31st March, 2009.
Commenting on the statement Gerry Grimstone, Chairman of Candover, said
"The Board of Candover is committed to putting the Company on a firm financial footing so that the value in our funds, including Candover's share of the carried interest in those funds, can be maintained and realised for shareholders. We have now reached formal agreement with the Limited Partners of the 2008 Fund for that Fund to suspend its investment activity for up to six months while we explore all the strategic options available and continue to stabilise our financial position."
Strategic Review
On 2nd March 2009 as part of its preliminary results announcement for the year ended 31st December 2008, the Board of Candover announced that it was undertaking a review of its strategic options. In particular, given the impact on Candover's financial position of the unprecedented global economic developments which occurred during the latter part of 2008, the immediate focus was to reinforce the financial position of the Company.
As part of the Board's plan to reinforce the Company's financial position, agreement has now been reached for the 2008 Fund to be suspended for up to six months from 6 April, 2009. The principal terms of the standstill agreement are that no new investments will be made by the 2008 Fund during the standstill period and the fees payable by Limited Partners in the 2008 Fund to Candover will be set by reference to the 2008 Fund's existing investment in Expro International rather than total commitments.
Subsequent to the preliminary results announcement the Board confirmed on 13th March, 2009 that it had received indicative expressions of interest covering a range of options for the business including potential offers for the Company. Candover may enter into preliminary discussions with selected parties in due course but emphasizes that there can be no certainty as to the outcome of such discussions. Further announcements will be made as appropriate.
Portfolio valuation and performance
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 as at 31st December, 2008. The net asset value per share as at that date was 1026p. Since that date there have been no new investments and no realisations.
The next valuation will be conducted as of 30th June 2009, and 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 respective funds. Whilst the economic climate remains challenging, many of the portfolio companies continue to perform robustly.
Publication of Report and Accounts and Annual General Meeting
Copies of Candover's Annual Report and Accounts for the year to 31st December, 2008, incorporating the Notice of Annual General Meeting and form of proxy, have been submitted to the UK Listing Authority and will shortly be available for inspection at the UK Listing Authority's Document Viewing Facility at The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS (Tel: +44 20 7066 1000).
Copies of the Annual Report and Accounts 2008 and the Notice of Annual General Meeting will shortly be available on the Company's website at www.candoverinvestments.com.
The Annual General Meeting of Candover Investments plc will be held on Wednesday 13th May, 2009.
Changes to Company Secretariat
Philip Price was appointed Company Secretary and General Counsel of Candover Investments plc on 25th February, 2009, following Andrew Moberly's resignation as Secretary.
Ends.
For further information, please contact: Candover Investments plc +44 20 7489 9848 Philip Price , Company Secretary and
General Counsel Tulchan +44 20 7353 4200 Susanna Voyle / Peter Hewer Lexicon Partners +44 207 653 6000 Matthew Lindsey- Clark Merrill Lynch +44 207 995 7555 Mark Astaire Matthew Blawat
Note: This statement aims to give an indication of material events and transactions that have taken place during the period from 1st January, 2009 to 31st March 2009 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
2Candover T +44 (0) 20 7489 9848 Registered in Investments plc England No. F +44 (0) 20 7248 5483 1512178 at the 20 Old Bailey E [email protected] address shown. London EC4M 7LN An investment company within the meaning of part VIII of the Companies Act 1985.
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