Binding offer for Allflex Holdings

RNS Number : 9516D

Electra Private Equity PLC

03 May 2013

 



Electra announces binding offer for Allflex Holdings

3 May 2013

Electra announces that it has received a binding offer from funds advised by BC Partners for Allflex Holdings ("Allflex"), its largest investment which had a valuation of £154 million at 30 September 2012.

The offer is subject to consultation with the relevant works council in France and certain regulatory approvals. The offer values AlIflex at an enterprise value in excess of US$1.3 billion and, if accepted, will result in gross proceeds to Electra of US$398 million.

Electra's unaudited results for the half year ended 31 March 2013 will be announced on 30 May 2013 following the completion of the revaluation of the investment portfolio at 31 March 2013.

Reflecting current exchange rates together with a carried interest provision (see below), the sale of Allflex would represent an uplift in Electra's diluted NAV per share of 159p from the audited accounts at 30 September 2012.

Carried Interest Provision

As part of the update of investment strategy and terms of appointment for Electra Partners which were approved by shareholders in 2006, members of Electra Partners receive a carried interest of 18% of net profits on each relevant three year pool of investments subject to Electra receiving back the aggregate amounts advanced to finance investments in the relevant pool, a related priority profit share of 1.5% of valuation per annum and a performance hurdle of 8% per annum compound.

In accordance with the financial reporting requirements to which Electra is subject, an accounting provision is only made in respect of carried interest arrangements when there is a reasonable likelihood that an amount may become payable in respect of a relevant investment pool.

Calculated on the assumption that the valuation of the remaining investments in the 2006 investment pool remained unchanged from 30 September 2012, the realisation of Allflex triggers a provision in respect of the 2006 investment pool of £38.6 million. No provision has previously been made in respect of the 2006 investment pool.

For further information please contact:

For David Symondson:
Charlotte McMullen, M:Communications                                 [phone]
Andrew Kenny or Nicholas Board, Electra Partners                  [phone]

Laurent Haziza, Rothschild                                                     [phone]

 

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