12 May
2016
Candover* Investments plc – Trading
update
Candover Investments plc (‘Candover’ or the ‘Company’) today
issued the following trading update at its Annual General Meeting.
The statement, as is usual, is unaudited, and relates to the period
from 1 January 2016 to the date of
this announcement.
Candover’s investment portfolio was last valued as of
31 December 2015, with a net asset
value per share of 243p. The next valuation of the Company’s
assets will be conducted as of 30 June 2016. Over the course
of the first quarter of 2016, the net effect of currency movements
on the value of the portfolio has been to increase its value by
approximately £4.9 million, as a result of the weakness of Sterling
relative to the Euro.
In late April 2016, Candover
announced that both Parques Reunidos (“Parques”) and Technogym had
been partially realised following Initial Public Offerings (“IPO”)
in Spain and Italy respectively. The proceeds of these
partial realisations, together with the Stork sale proceeds
received in March 2016, would reduce
net debt, on a pro-forma basis, to £11.2 million as of the end of
April.
Candover’s remaining indirect interests in both Parques and
Technogym are subject to 180 day lock up periods expiring towards
the end of October 2016. Since their
respective IPOs, the share price of Parques has declined by 9%,
valuing Candover’s remaining investment at £30.4 million, whilst
the share price of Technogym has increased by 15%, valuing
Candover’s remaining investment at £8.8 million. Both IPOs included
greenshoe options.
Under the terms of the debt facility a prepayment of €19.4
million is allowed, subject to delivering to the lender a minimum
return of 1.15x on the principal repaid. If this payment was
delayed until after 12 August 2016,
the minimum return rises to 1.4x principal, diluting net assets by
£3.85 million.
The Board has therefore concluded that, given both the length of
the lock up period and the structure of Candover’s debt
arrangements, the best use of current cash balances is to make this
initial repayment of debt rather than make a distribution to
shareholders as permitted by the debt facility.
Portfolio update and trading
At Hilding Anders, trading in Russia has come to a more normalised level in
2016 whilst the Group’s performance in Europe is slightly ahead of last year.
Trading at Expro has continued to be challenging as a result of the
sustained oil industry downturn. As the largest two portfolio
assets, Parques and Technogym, are now publicly quoted companies,
trading updates will be made by the investee companies themselves
in discharging their obligations as listed entities.
*Candover means Candover Investments plc and/or one or more of
its subsidiaries
Ends.
For further information, please contact:
Candover Investments plc
Malcolm Fallen,
CEO +44 20 7489 9848