Marwyn Value Investors Limited Completion of Equalisation Process for Zegona (6116F)

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RNS Number : 6116F

Marwyn Value Investors Limited

19 May 2017

19 May 2017

Marwyn Value Investors Limited ("Marwyn", the "Company")

Completion of Equalisation Process for Zegona Communications Plc ("Zegona")

The Company is pleased to confirm that following the announcement on 16 May 2017 that MVI II LP held its first third-party close, securing commitments of GBP41 million(1) from limited partners who have acquired interests in the portfolio at NAV and are expected to invest alongside the Company in future investment opportunities, the Equalisation Process as described below has successfully completed for the investment in Zegona.

MVI II LP is a private equity fund structure seeded by Marwyn Value Investors LP (the "Master Fund"). The Company has invested all of its available capital in the Master Fund. MVI II LP holds investments in Zegona, BCA Marketplace plc, Gloo Networks plc, Safe Harbour Holdings plc and Wilmcote Holdings plc (the "assets"). The Master Fund sold interests in MVI II LP to the new third party investors at the market value of the assets, with the exception of Zegona, at the close of business on Monday 15 May and at the market value of Zegona at the close of business on Thursday 18 May (the "Equalisation Process").

As a result of the Equalisation Process, the Ordinary Shares' interest in Zegona on a look-through basis has reduced by GBP12 million in aggregate, and the cash balance attributable to the Ordinary Shares has increased by the same amount. There is no net effect on NAV or NAV per Ordinary Share following the Equalisation Process. Please see note 3 for estimated NAV before and immediately after the Equalisation Process.

The sale of the Master Fund interests in MVI II LP will crystallise a profit of GBP1.2 million. The Company has returned GBP10 million in dividends since the sale of Entertainment One in September 2015 and in line with the Ordinary Share Distribution Policy is not required to pay a special dividend following this Profitable Realisation event.

As described in the Company's Circular published on 19 October 2016, Realisation shareholders will not be exposed to any investments directly or indirectly held by MVI II LP, as their assets are held within a separate realisation pool by the Master Fund.

Notes

1. Commitments received in both British pounds sterling and United States dollars

2. MVI II LP is a new fund comprising Jersey limited partnerships registered pursuant to the Limited Partnership (Jersey) Law 1994, being MVI II LP itself and MVI II Co-invest LP, a stapled co-investment vehicle. Further details on MVI II LP and the Master Fund's investment in MVI II LP may be found in the Prospectus, published in October 2016, and located on the Company's website http://www.marwynvalue.com .

The Master Fund, Marwyn Value Investors LP, is a Cayman exempt limited partnership into which the Company has invested all of its available capital. The Master Fund contributed investments to MVI II LP prior to the third-party fund close. All further investments attributable to the Ordinary Shares shall be made through MVI II LP, alongside new committed capital from third-party investors.

3. Allocation of the Company's NAV by portfolio company before and immediately after the Zegona Equalisation Process

Based upon the Company's investments in the Master Fund (directly) and MVI II LP (indirectly), the Company's total estimated NAV attributable to the Ordinary Shares is broken down across the following as at Thursday 18 May 2017:

 
 Equity Investments 
------------------------  ---------  --------  -------- 
 Company                    Ticker     GBPm      % of 
                                                  NAV 
------------------------  ---------  --------  -------- 
 Zegona Communications 
  plc(*)                    ZEG LN     69.6      42.6% 
------------------------  ---------  --------  -------- 
 BCA Marketplace plc(*)     BCA LN     30.9      18.9% 
------------------------  ---------  --------  -------- 
 Gloo Networks plc         GLOO LN      7.2      4.4% 
------------------------  ---------  --------  -------- 
 Le Chameau Group 
  plc                                   9.8      6.0% 
-----------------------------------  --------  -------- 
 Safe Harbour Holdings 
  plc                                   7.2      4.4% 
-----------------------------------  --------  -------- 
 Wilmcote Holdings 
  plc                                   8.1      4.9% 
-----------------------------------  --------  -------- 
 
 Cash                                  45.7      28.0% 
-----------------------------------  --------  -------- 
 Le Chameau Group 
  debt instrument                       9.6      5.9% 
-----------------------------------  --------  -------- 
 Other assets of the 
  Master Fund                           0.1      0.1% 
-----------------------------------  --------  -------- 
 Liabilities of the 
  Master Fund                         (24.9)    (15.2)% 
-----------------------------------  --------  -------- 
 Net assets                            163.3    100.0% 
-----------------------------------  --------  -------- 
 NAV per Ordinary                     GBP2.31 
  Share (GBP) 
-----------------------------------  --------  -------- 
 

The Company's total estimated NAV is broken down across the following immediately after the Zegona Equalisation Process:

 
 Equity Investments 
------------------------  ---------  --------  -------- 
 Company                    Ticker     GBPm      % of 
                                                  NAV 
------------------------  ---------  --------  -------- 
 Zegona Communications 
  plc(*)                    ZEG LN     57.3      35.0% 
------------------------  ---------  --------  -------- 
 BCA Marketplace plc(*)     BCA LN     30.9      18.9% 
------------------------  ---------  --------  -------- 
 Gloo Networks plc         GLOO LN      7.2      4.4% 
------------------------  ---------  --------  -------- 
 Le Chameau Group 
  plc                                   9.8      6.0% 
-----------------------------------  --------  -------- 
 Safe Harbour Holdings 
  plc                                   7.2      4.4% 
-----------------------------------  --------  -------- 
 Wilmcote Holdings 
  plc                                   8.1      4.9% 
-----------------------------------  --------  -------- 
 
 Cash                                  58.0      35.6% 
-----------------------------------  --------  -------- 
 Le Chameau Group 
  debt instrument                       9.6      5.9% 
-----------------------------------  --------  -------- 
 Other assets of the 
  Master Fund                           0.1      0.1% 
-----------------------------------  --------  -------- 
 Liabilities of the 
  Master Fund                         (24.9)    (15.2)% 
-----------------------------------  --------  -------- 
 Net assets                            163.3    100.0% 
-----------------------------------  --------  -------- 
 NAV per Ordinary                     GBP2.31 
  Share (GBP) 
-----------------------------------  --------  -------- 
 

(*) The closing share prices of Zegona Communications plc and BCA Marketplace Plc have moved from 143p and 202p respectively on Monday 15 May to 157p and 205p respectively on Thursday 18 May, resulting in a GBP5.6m increase in total estimated NAV attributable to the Ordinary Shares over that period.

Company enquiries:

Louisa Bonney / Scott Danks

Axio Capital Solutions Limited

Telephone: [phone]

PR enquiries:

Alex Child-Villiers / Ed Orlebar

Temple Bar Advisory Limited

Telephone: [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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May 19, 2017 02:00 ET (06:00 GMT)