27th Sep 2007 07:03
3i Group PLC27 September 2007 27 September 2007 3i Group plc - Pre-close period briefing 3i Group plc ("3i"), a world leader in private equity and venture capital, willbe holding discussions with analysts and investors ahead of its close period forthe six months ending 30 September 2007. This statement sets out theinformation that will be covered in those discussions. 3i expects to announceits results for the six months ending 30 September 2007 on 8 November 2007. Commenting on the statement Philip Yea, 3i Chief Executive said: "3i has delivered high levels of realisations and realised profits in the firstfive months. New investment has also grown, particularly in our Growth Capitalbusiness line and through the launch of 3i Quoted Private Equity." "Whilst the dislocation in leveraged finance markets is expected to lead to aslowdown in new buyout transactions completed, our strategy of broadening thespread of our asset classes and geographies, combined with our balance sheetresources, enables us to address the current period of adjustment from aposition of strength." The main topics that will be discussed with analysts and investors are set outbelow. 1 Investments and realisations 3i invested a total of £1,012 million in the five months ended 31 August 2007compared with £452 million in the equivalent period last year. In addition,£258 million (2006: £116 million) was invested on behalf of co-investment fundsmanaged by 3i. Realisation proceeds received by 3i (excluding co-investment funds managed by3i) were £1,011 million in the five months ended 31 August 2007 (2006: £627million). Investment and realisations by business line were as follows: Investment £m Realisations £m(5 months ended) 31 August 31 August (5 months ended) 31 August 31 August 2007 2006 2007 2006Buyouts 339 251 Buyouts 539 298Growth Capital 445 106 Growth Capital 255 207Venture Capital 45 75 Venture Capital 110 20QPE 182 9 QPE 17 -SMI - 5 SMI 58 98Infrastructure 1 6 Infrastructure 32 4 Total 1,012 452 Total 1,011 627 Investments and realisations made during the period by 3i Infrastructure Limitedand 3i Quoted Private Equity Limited("3i QPE") are not included. 2 Returns Realisations for the five month period have been achieved at aggregate upliftsover 31 March 2007 carrying values ahead of the uplifts achieved in the sixmonths to 30 September 2006 (34%). Consequently, realised profits (net of write-offs) on the disposal ofinvestments for the five month period to 31 August 2007 are ahead of those forthe six months to 30 September 2006. As usual, an important element in the determination of 3i's results for the halfyear to 30 September 2007 will be the detailed valuation exercise carried out onits investment portfolio as at that date. 3 Strategic developments 3i QPE raised £400 million and listed on the London Stock Exchange on 29 June2007, including an investment of £181 million by 3i. In its prospectus, 3i QPEstated that it intends to build a portfolio of influential or controlling stakesin small and mid-cap quoted companies, primarily in the UK and continentalEurope. 3i Investments plc acts as investment adviser to 3i QPE. Today 3i also announces the first close of the 3i India Infrastructure Fund (the"Fund"). The Fund is the first to be established within the framework of thestrategic partnership agreement announced by 3i and the India InfrastructureFinance Company Limited ("IIFCL") in April. The Fund has a target size of $1.0billion and, as part of the first close, 3i has committed a minimum of $250million to the Fund with 3i Infrastructure Limited, which is advised by 3iInvestments plc, committing $250 million. 4 Return of capital to shareholders Shareholders approved an £807 million bonus issue of listed B shares and a 17for 20 share capital consolidation at 3i's EGM on 12 July 2007. In addition,during the period, 3i purchased and cancelled 6.1 million ordinary shares for anaggregate amount of £63.8 million under the share buyback authority granted byshareholders at the AGM in July 2007. Ends For information please contact: Simon Ball Finance Director, 3i Group plc 020 7975 3356Patrick Dunne Group Communications Director, 3i Group plc 020 7975 3283Rachel Richards 3i Press office 020 7975 3573Philip Gawith Maitland 020 7379 5151 This statement aims to give an indication of 3i's expected return (and of keycomponents of that return) for the six months to 30 September 2007. Theseindications reflect the Board's current view. They are subject to a number ofrisks and uncertainties and could change. In particular, an important elementin the determination of 3i's results for the six months to 30 September 2007 isthe detailed valuation exercise carried out on its investment portfolio as atthat date. The final results for the six months to 30 September 2007, due to bereported on 8 November 2007, may differ accordingly. Factors which could causeor contribute to such differences include, but are not limited to, generaleconomic and market conditions and specific factors affecting the financialprospects or performance of individual investments within 3i's portfolio. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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