Electra Private Equity PLC Edison issues update on Electra Private Equity

TIDMELTA

Electra Private Equity PLC

28 September 2021

London, UK, 28 September 2021

Edison issues update on Electra Private Equity (ELTA)

On 16 September, Electra Private Equity (ELTA) issued a trading update for its largest remaining hospitality brands, Fridays and 63rd+1st, and named the board members for Hostmore, the parent company of those brands. ELTA's board confirmed its intention to demerge Fridays - the largest of the two operating businesses (74% of ELTA's NAV) - onto the Main Market of the London Stock Exchange (initially announced in May), early in Q421. The board aims to transition the remaining company, Hotter Shoes (10% of ELTA's NAV), to AIM, renaming it Unbound. ELTA has been following a realisation strategy since October 2016, when it had a market cap of c GBP1.1bn, and has since returned c GBP2bn to shareholders. Since our initiation note published in December 2020, ELTA's NAV has appreciated c 45% from GBP135m to GBP197m. The market capitalisation of c GBP222m and a c GBP320m management valuation for Hotter and TGI Fridays (excluding cash, see below) implies further upside for ELTA's share price.

Electra Private Equity's (ELTA) investment objective is to follow a realisation strategy, which aims to crystallise value for shareholders through balancing the timing of returning cash to shareholders with maximisation of value. ELTA intends to use cash and other liquid assets for transaction costs and to support the balance sheet of TGI Fridays and Hotter Shoes businesses for listing.

Click here to view the full report or here to sign up to receive research as it is published.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: E dison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority .

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Victoria Chernykh [phone] [e-mail]

Richard Finch [phone] [e-mail]

   Learn more at   www.edisongroup.com and connect with Edison on: 
   LinkedIn        www.linkedin.com/company/edison-group-/ 
   Twitter             www.twitter.com/Edison_Inv_Res 
   YouTube       www.youtube.com/edisonitv 

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

Reach is a non-regulatory news service. By using this service an issuer is confirming that the information contained within this announcement is of a non-regulatory nature. Reach announcements are identified with an orange label and the word "Reach" in the source column of the News Explorer pages of London Stock Exchange's website so that they are distinguished from the RNS UK regulatory service. Other vendors subscribing for Reach press releases may use a different method to distinguish Reach announcements from UK regulatory news.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

NRABSGDCRBDDGBR

(END) Dow Jones Newswires

September 28, 2021 02:00 ET (06:00 GMT)