3i Quoted Private Equity Limited
07 February 2008
Interim Management Statement
3i Quoted Private Equity Limited ('3i QPEL' or 'the Company') is an investment
company, listed on the London Stock Exchange, that aims to apply private equity
value creation techniques to quoted businesses. This Interim Management
Statement is issued in accordance with FSA Disclosure and Transparency Rule 4.3.
This statement relates to the period from 30 September 2007 to today's date.
David Tyler, Chairman of 3i QPEL said: 'Since the announcement of our interim
results in November, two planned investments have been announced and the
investment advisory team has continued to add to a pipeline of investment
Bruce Carnegie-Brown, Managing Partner for Quoted Private Equity, 3i
Investments plc, Investment Adviser to 3i QPEL, added: 'The volatile market
environment of the last few months poses significant challenges, but also offers
significant opportunities for 3i QPEL. The breadth and depth of 3i's
relationships, and the experience of the advisory team will enable us to take
advantage of these opportunities.'
1. Investment activity
No new investments have been completed by the Company since 30 September 2007.
However, two proposed investments have been announced since that date.
Proposed investment in Jelf Group plc - On 29 January 2008 Jelf Group plc
('Jelf'), an insurance broker based in Bristol, announced the acquisition of
Manson Insurance Group Limited, Bartlett Davies Bicks Limited and Carter & Co
Risk Management Limited, three regional insurance brokers, for an initial
consideration of £19.1 million. At the same time, Jelf announced its intention
to raise £47 million of new equity, £21 million of which through a placing to
institutional shareholders and £26 million of which through a subscription from
3i QPEL. Both the subscription and the placing are conditional upon approval
from Jelf shareholders at an Extraordinary General Meeting, which is due to take
place on 25 February.
The subscription by 3i QPEL is also conditional upon the Financial Services
Authority granting change of control approval to 3i QPEL for Manson Insurance
Group Limited, Bartlett Davies Bicks Limited and Carter & Co Risk Management
Following completion of the proposed placing and subscription, 3i QPEL will
hold 24.6% of the enlarged share capital of Jelf and Bruce Carnegie-Brown will
join the board of the company as non-executive director.
Proposed investment in Hydrogen plc - On 20 December 2007, the boards of
Hydrogen plc ('Hydrogen') and Imprint plc ('Imprint') announced that they had
reached agreement on the terms of a recommended proposal by Hydrogen to acquire
the entire share capital of Imprint. Concurrently, 3i QPEL announced that, in
connection with Hydrogen's proposed acquisition of Imprint, it will make equity
and convertible debt investments in Hydrogen for a total of £20.5 million,
conditional upon the acquisition of Imprint by Hydrogen becoming effective. At
the same time, 3i QPEL will make a recommended partial cash offer to existing
Hydrogen shareholders to acquire 18.5% of the company's current issued share
capital. Upon completion of the proposed transactions, 3i QPEL will hold
between 28.6% and 34.4% of the enlarged share capital of Hydrogen, on a fully
Hydrogen's proposed acquisition of Imprint is being executed as a
court-sanctioned scheme of arrangement. The Imprint EGM and the court meeting
to approve the recommended acquisition will take place on 29 February.
2. Net asset value
The net asset value of the Company as at 31 January is 99.5 pence per share,
representing an increase of 1.4% compared to the opening net asset value at
flotation of 98.1 pence per share, net of flotation and other set-up costs. The
main drivers of net asset value in the period were: (i) interest on bank
deposits, averaging 6.3% and; (ii) the decline in the share price of Character
Group which has resulted in a 1.2 pence decline in 3i QPEL's net asset value per
share between 30 September 2007 and 31 January 2008.
- ends -
For further information, please contact:
David Tyler, Chairman, 3i Quoted Private Equity Limited Tel.: 01534 711 445
Bruce Carnegie-Brown, Tel: 020 7975 3067
Managing Partner, QPE, 3i Investments plc
Jennifer Letki, press enquiries Tel: 020 7975 3190
Lydia Pretzlik, Maitland Tel: 020 7379 5151
Notes to editors
3i Quoted Private Equity Limited ('3i QPEL') is a newly established, Jersey
incorporated, public closed-end investment company. 3i QPEL was admitted to the
Official List and to trading on the London Stock Exchange on 29 June 2007. 3i
Investments plc ('3i Investments'), which is regulated in the UK by the
Financial Services Authority, has been appointed by 3i QPEL to act as its
3i QPEL aims to deliver private equity value creation techniques to public
companies, leveraging the international network of its investment adviser to
source attractive opportunities and execute its value creation plan. 3i QPEL
will build a portfolio of influential stakes (typically between 25% and 75%) in
selected companies in the UK and continental Europe and across a broad spectrum
of sectors to attain the level of influence necessary to generate significant
improvements in operating performance.
This statement aims to give an indication of material events and transactions
that have taken place during the period from 30 September 2007 to the date of
publication of this statement and their impact on the financial position of 3i
Quoted Private Equity Limited. These indications reflect the Board's current
view. They are subject to a number of risks and uncertainties and could change.
Factors which could cause or contribute to such differences include, but are not
limited to, general economic and market conditions and specific factors
affecting the financial prospects or performance of individual investments
within the portfolio of 3i Quoted Private Equity Limited.
This information is provided by RNS
The company news service from the London Stock Exchange