EPE Special Opportunities Limited Acquisition of Carried Interest & Net Asset Value (4443Y)

TIDMESO TIDMEO.P TIDMEC.P TIDMEL.P

RNS Number : 4443Y

EPE Special Opportunities Limited

09 May 2019

EPE Special Opportunities Limited

Acquisition of Carried Interest in ESO Investments 1 LP and Net Asset Value

Acquisition of Carried Interest in ESO Investments 1 LP

EPE Special Opportunities Limited ("ESO" or the "Company") announces that it has today entered into an agreement to acquire the carried interest accrual in ESO Investments 1 LP, a limited partnership in which it is the sole limited partner (the "Carried Interest"). ESO Investments 1 LP holds the Company's indirect interests in Luceco, Whittard of Chelsea and Pharmacy2U (collectively, the "Relevant Portfolio Assets").

Total consideration for the Carried Interest of GBP9.8 million will be satisfied by the issue of 4,473,347 ordinary shares in the Company, to be issued at 220.11 pence each, representing a premium of 22.3 per cent to the mid-market closing price of the Company's ordinary shares on 8 May 2019. The acquisition the Carried Interest is contingent upon the shares being admitted, which is expected to take place on 14 May 2019.

The Carried Interest relates to the increase in value of ESO Investments 1 LP since its formation in September 2010, in which ESO is now the sole investor. Since inception, the portfolio of ESO Investments 1 LP has realised cash proceeds of GBP99.0 million and has achieved an additional unrealised return of GBP51.4 million, bringing the total proceeds at completion of today's transaction to GBP150.3 million. This equates to a total money multiple of 3.2x and an IRR of 29.2% on capital deployed by ESO Investments 1 LP.

Transaction Rationale

The Company's rationale for the transaction is as follows:

-- Maximise long-term liquidity in the Company: by satisfying the Carried Interest in ordinary shares of the Company, ESO will retain the equivalent proceeds in cash when the Relevant Portfolio Assets of ESO Investments 1 LP are sold. These proceeds will then be available to the Company to re-invest, rather than being paid out to EPIC Private Equity LLP.

-- Increased long-term alignment with the Investment Advisor: the transaction increases EPIC Private Equity's ownership of ESO, increasing the long-term alignment of the Investment Advisor with shareholders in the Company.

The Board of ESO considers, having consulted with Numis as the Company's nominated adviser, that the terms of the transaction are fair and reasonable in so far as the Company's shareholders are concerned.

An application will be made for the admission of 4,473,347 ordinary shares of 5 pence each ("Admission"). Admission is expected to take place on 14 May 2019. Immediately subsequent to completion of the transaction the number of ordinary shares in issue, excluding those held by the Company in treasury, will be 33,622,811 ordinary shares (which should be used as the denominator for calculations of interests in the Company's voting rights).

Related Party Transaction

The transaction constitutes a related party transaction under Rule 13 of the AIM Rules and as part of the transaction certain members of EPIC Private Equity LLP (being PDMRs of the Company) and their connected persons will receive ordinary shares in the Company in the following amounts.

The details of the ordinary shares received by the PDMRs are as follows:

 
 PDMR             Role              Number of          Price per   Number of      Percentage 
                                     Ordinary           Ordinary    Ordinary       of Total 
                                     Shares Received    Share       Shares Held    Voting Rights 
                                                                    Following      Held Following 
                                                                    Receipt        Receipt 
 Giles Brand      Managing 
  (& Connected     Partner 
  Persons)         of EPE           3,712,880          220.11p     10,245,650     30.5% 
                 ----------------  -----------------  ----------  -------------  ---------------- 
                  Managing 
                   Partner, 
                   Finance 
                   Director 
                   and Head 
                   of Compliance 
 Hiren Patel       of EPE           44,733             220.11p     440,034        1.3% 
                 ----------------  -----------------  ----------  -------------  ---------------- 
 

The PDMRs (and their connected persons), together with the other persons receiving ordinary shares in connection with the transaction (collectively, the "Recipients"), have agreed not to dispose of the ordinary shares being issued to them in connection with the transaction until the third anniversary of receipt. Should the ESO Group realise some or all of its interests in the Relevant Portfolio Assets prior to the third anniversary of today's transaction, the Recipients are permitted to dispose of the ordinary shares issued to them in connection with today's transaction in proportion to the amount of any proceeds received by the ESO Group relative to the gross asset value of the Relevant Portfolio Assets as at the completion of today's transaction.

The notification of dealing forms for each PDMR can be found below.

Net Asset Value

Immediately subsequent to completion of the transaction, the estimated net asset value of ESO will be 241.32 pence per ordinary share (based on a Luceco plc share price of 88.00 pence per ordinary share).

Inside Information

This announcement is made in accordance with Article 19 of the EU Market Abuse Regulation 596/2014.

The person responsible for releasing this information on behalf of the Company is Hilary Jones of R&H Fund Services (Jersey) Limited.

Enquiries:

 
 EPIC Private Equity LLP               [phone] 
                                        Alex Leslie 
 
 R&H Fund Services (Jersey) Limited    [phone] 
                                        Hilary Jones 
 
 Cardew Group Limited                  [phone] 
                                        Richard Spiegelberg 
 
 Numis Securities Limited              [phone] 
 Nominated Advisor:                    Stuart Skinner / Hugh Jonathan 
 Corporate Broker:                     Charles Farquhar 
 

DEALING NOTIFICATION FORM

FOR USE BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITY AND THEIR CLOSELY ASSOCIATED PERSONS

 
 1.    Details of the person discharging managerial responsibilities/person 
        closely associated 
 a)    Name                                           Giles Brand 
      ---------------------------------------------  ------------------------------------ 
 2.    Reason for the notification 
      ----------------------------------------------------------------------------------- 
 a)    Position/Status                                Managing Partner of Investment 
                                                       Advisor 
      ---------------------------------------------  ------------------------------------ 
 b)    Initial Notification/Amendment:                Initial notification 
      ---------------------------------------------  ------------------------------------ 
 3.    Details of the issuer, emission allowance market participant, 
        auction platform, auctioneer or auction monitor 
      ----------------------------------------------------------------------------------- 
 a)    Name                                           EPE Special Opportunities Limited 
      ---------------------------------------------  ------------------------------------ 
 b)    LEI                                            213800BQKN9C23A7LK98 
      ---------------------------------------------  ------------------------------------ 
 4.    Details of the transaction(s): section to be repeated 
        for (i) each type of instrument; (ii) each type of transaction; 
        (iii) each date; and (iv) each place where transactions 
        have been conducted 
      ----------------------------------------------------------------------------------- 
 a)    Description of the financial                    Ordinary shares of 5p each. 
        instrument, type of instrument 
 
        Identification code                             ISIN: BMG3163K1053 
      ---------------------------------------------  ------------------------------------ 
 b)    Acquisition of interest in shares 
      ----------------------------------------------------------------------------------- 
 c)    Price(s) and volume(s):                        Price(s)           Volume(s) 
      ---------------------------------------------  -----------------  ----------------- 
                                                      220.11 p          3,712,880 
 --------------------------------------------------  -----------------  ----------------- 
 d)         Aggregated information: 
             Price 220.11 pence 
             Volume 3,712,880 Ordinary Shares 
      ----------------------------------------------------------------------------------- 
 e)    Date of the transaction                        9 May 2019 
      ---------------------------------------------  ------------------------------------ 
 f)    Place of the transaction                       London Stock Exchange; AIM 
      ---------------------------------------------  ------------------------------------ 
 
 
 1.    Details of the person discharging managerial responsibilities/person 
        closely associated 
 a)    Name                                           Hiren Patel 
      ---------------------------------------------  ---------------------------------------- 
 2.    Reason for the notification 
      --------------------------------------------------------------------------------------- 
 a)    Position/status                                Managing Partner, Finance Director 
                                                       and Head of Compliance of Investment 
                                                       Advisor 

      ---------------------------------------------  ---------------------------------------- 
 b)    Initial notification/Amendment:                Initial notification 
      ---------------------------------------------  ---------------------------------------- 
 3.    Details of the issuer, emission allowance market participant, 
        auction platform, auctioneer or auction monitor 
      --------------------------------------------------------------------------------------- 
 a)    Name                                           EPE Special Opportunities Limited 
      ---------------------------------------------  ---------------------------------------- 
 b)    LEI                                            213800BQKN9C23A7LK98 
      ---------------------------------------------  ---------------------------------------- 
 4.    Details of the transaction(s): section to be repeated 
        for (i) each type of instrument; (ii) each type of transaction; 
        (iii) each date; and (iv) each place where transactions 
        have been conducted 
      --------------------------------------------------------------------------------------- 
 a)    Description of the financial                    Ordinary shares of 5p each. 
        instrument, type of instrument 
 
        Identification code                             ISIN: BMG3163K1053 
      ---------------------------------------------  ---------------------------------------- 
 b)    Acquisition of interest in shares 
      --------------------------------------------------------------------------------------- 
 c)    Price(s) and volume(s):                        Price(s)             Volume(s) 
      ---------------------------------------------  -------------------  ------------------- 
                                                      220.11 p            44,733 
 --------------------------------------------------  -------------------  ------------------- 
 d)         Aggregated information: 
             Price 220.11 pence 
             Volume 44,733 Ordinary Shares 
      --------------------------------------------------------------------------------------- 
 e)    Date of the transaction                        9 May 2019 
      ---------------------------------------------  ---------------------------------------- 
 f)    Place of the transaction                       London Stock Exchange; AIM 
      ---------------------------------------------  ---------------------------------------- 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. 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.

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May 09, 2019 02:00 ET (06:00 GMT)