Portfolio Update

RNS Number : 3883U

Merian Chrysalis Investment Co. Ltd

29 July 2020

 

For immediate release

The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area (other than professional investors in the Republic of Ireland), Canada, Australia, Japan or the Republic of South Africa.

Merian Chrysalis Investment Company Limited

29 July 2020

Merian Chrysalis Investment Company Limited (the "Company")

Portfolio Update

The Company today confirms that the underlying asset referred to in the announcement dated 20 July 2020 is TransferWise Ltd ("TransferWise"), where it has participated in TransferWise's US$319 million secondary share sale, which valued the business at US$5 billion.

The transaction is the first sale conducted by the Company and has generated a significant return for shareholders. The share price implied by this transaction represents a gross uplift on the Company's initial investment price in November 2018 of 2.2x, or 1.7x on an average price basis. The latter implies an internal rate of return of circa 63% (on a US dollar basis, assuming the new valuation is applied to the remaining TransferWise holding in the Company).

As of the Interim Report to 31 March 2020, TransferWise comprised over 18% of the Company's NAV, and this transaction represented an opportunity to control the size of the Company's position at this new valuation; the Investment Advisor continues to believe in the long-term investment case for TransferWise.

This disposal has increased the Company's available cash balance by circa £20 million to approximately £55 million. The Investment Advisor intends to use the proceeds raised to reinvest in the portfolio and continues to assess a range of new ideas and follow-on opportunities.

Nick Williamson, portfolio manager, comments:

"TransferWise has been a very successful investment for Merian Chrysalis, having delivered a gross valuation uplift of approximately $50m over our holding period. It still represents a significant part of our portfolio and we continue to be excited by growth prospects for the business. Its new valuation demonstrates the attractiveness to global investors of tech-enabled disruptors as they scale up, and we're delighted to be able to crystallise some of this gain for the benefit of our shareholders."

Richard Watts, portfolio manager, adds:

"The sale represents a significant moment for Merian Chrysalis. In the Interim Report we expressed our aspirations to move into the Company's second phase, the "growth" phase, with an eye on phase three - "realisations" - in due course. This transaction has allowed us to deliver on both of these goals: it has driven NAV progression, and also demonstrated our ability to recycle capital to fund future investments in the portfolio."

ENDS

For further information, please contact:

Merian Global Investors: Amelie Shepherd	[phone]
Liberum: Gillian Martin / Owen Matthews	[phone]
Maitland Administration (Guernsey) Limited: Elaine Smeja	[phone]

LEI: 213800F9SQ753JQHSW24

A copy of this announcement will be available on the Company's website at https://www.merian.com/chrysalis/. Neither the content of the Company's website, nor the content on any website accessible from hyperlinks on its website for any other website, is incorporated into, or forms part of, this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.

This announcement may include "forward-looking statements". All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's products and services) are forward-looking statements.

Forward-looking statements are subject to risks and uncertainties and accordingly the Company's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements. These factors include but are not limited to those described in the formal Prospectus. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Listing Rules or Prospectus Regulation Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.

 

END

 

 

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