Electra Announces sale of Vendcrown to MBNA

Electra Announces sale of Vendcrown to MBNA

Electra Investment Trust ('Electra') is pleased to announce the sale of
Vendcrown Limited, the holding company of Premium Credit Limited ('Premium
Credit'), to MBNA Europe Bank Limited ('MBNA').  Premium Credit is the UK's
leading provider of instalment credit for the financing of commercial and
consumer insurance premiums. It also finances non-insurance credit products
such as golf club memberships, school fees and audit fees.

Premium Credit was acquired in 1996 from HSBC Gibbs Holdings Limited (now HSBC
Insurance Brokers Holdings Limited)in a transaction arranged by Electra
Partners Europe Limited.  The initial financing involved Electra and other
funds managed by Electra Partners Europe Limited as well as HSBC Insurance
Brokers Holdings Limited and other investors.

Net proceeds attributable to Electra immediately on completion are £66.6
million in cash (making total aggregate proceeds of £72.4 million inclusive of
the loan stock repayment of £5.8 million in October 2003).  This disposal
represents an uplift in Electra's net asset value per share of 23.6p over the
audited net asset value of 760p per share as at 30 September 2003 and compares
with Electra's £57.0 million valuation of its interests in Vendcrown at that
date.  Proceeds from the disposal will be used to reduce bank borrowings.

The total aggregate proceeds on completion attributable to Electra and the
other funds managed by Electra Partners Europe Limited amount to £84.1 million
which compares with a residual investment cost of £15.7 million.  Depending on
circumstances, a further £4.4 million may become payable.

Electra and the other shareholders of Vendcrown were advised by Lexicon
Partners Limited in relation to this transaction.

Commenting on the deal, David Symondson, Director of Electra Partners Europe
Limited, said:

'We are pleased to have been involved with Premium Credit and are delighted
with the sale of the business to MBNA.  Over the 7 years which we have held the
investment, the IRR will be around 29%.  The return on this investment is a
further demonstration of the quality of Electra's portfolio.'

Enquiries:

David Symondson, Electra Partners Europe Limited, 020 7831 6464

Hugh Mumford, Electra Partners Europe Limited, 020 7831 6464

Nick Miles, M: Communications, 020 7153 1535

 

Notes to Editors:

 

In his Annual Statement made in December 2003, the Chairman of Electra reported
that prospects for realising a number of portfolio companies over the next 12
months had increased and anticipated a significant improvement in Electra's
financial position by 30 September 2004 if business confidence continued to
grow and realisations were concluded at projected values.  Over the four and a
half year period to 30 September 2003 Electra has realised over £1.3 billion
from its portfolio.

 

Electra Partners Europe Limited, the Manager of Electra, is a subsidiary of
Electra Partners Limited, the independent private equity group which had a
total of £1.5 billion of funds under management at 30 September 2003 and has
invested over £625 million in the five years to that date.

 

Today Electra has also announced the refinancing of Baxi Group which
represented an uplift in Electra's net asset value per share of 21.2p over the
audited net asset value of 760p per share at 30 September 2003. The full
announcement of the Baxi Group transaction is being made to the UK Listing
Authority and copies will be available from M: Communications. The total uplift
in Electra's net asset value per share amounts to 44.8p as a result of the Baxi
Group and Vendcrown transactions.