B.P. Marsh & Partners PLC
12 February 2008
Date: 12th February 2008
On behalf of: B.P. Marsh & Partners Plc ('B.P. Marsh' or the 'Company')
Embargoed For: 0700hrs
B.P. Marsh & Partners Plc
Sale of investment in Principal Investment Holdings Ltd
B.P. Marsh & Partners (AIM: BPM), a niche venture capital provider to early
stage financial services businesses, is pleased to announce today the sale of
Principal Investment Holdings Ltd ('Principal'), the specialist investment
management company in which it has an equity investment to Sanlam, a South
African insurance and financial services group (the 'Transaction'). B.P. Marsh's
share of the consideration will be approximately £7.4 million including
preferred dividend rights. This deal is expected to complete on 14th March 2008.
This consideration compares to a value of £7.371 million attributed to B.P.
Marsh's equity investment in Principal on 31st July 2007.
Since December 1999, the Company has invested £2.8 million in Principal. The
total estimated sale proceeds therefore equate to an investment multiple of 2.64
times the Company's equity investment and an investment gain of £4.6 million
based upon the sale price before any market performance adjustment, described
Principal was founded in 1987 and provides predominantly discretionary fund
management advice through tailored professional investment management services
to private clients, trusts, charities and a range of corporate customers.
Principal achieved an audited pre-tax profit of £2.3 million in the year ended
31st December 2006. Unaudited management accounts show a pre-tax profit for the
year ended 31st December 2007 of £2.7 million.
B.P. Marsh's consideration will consist of an immediate cash payment on
completion, subject to an adjustment for debt and expected transaction costs, of
£5,797,225, representing 80% of the total anticipated capital consideration, as
well as a preferred dividend entitlement in respect of the year ended 31st
December 2007 which is estimated to be £170,650.
In addition, the Company may, subject to certain conditions, be entitled to a
further capital payment of £1,449,307 (the 'Deferred Consideration'), which
represents the remaining 20% of its share of the Transaction consideration. The
Deferred Consideration will be payable in two years' time and will be determined
by the performance of the FTSE 100 Index on specific quarter dates during that
period relative to the value of the FTSE 100 Index on the date the sale price
was agreed (6,479 points).
It is intended that the Company will invest the proceeds to fund new
investments, two of which have already been identified and are currently
undergoing due diligence.
Commenting on the sale, Brian Marsh OBE, B.P. Marsh's Chairman, said:
'We are delighted to announce our first investment sale since we floated on AIM.
We believe the price offers an excellent return for our investors, especially
considering the recent turbulence in the financial markets, and the proceeds
raised enables the Company to continue to make new investments where we continue
to see many excellent opportunities. We have been investors in Principal since
1999 and have thoroughly enjoyed the challenges and opportunities that this has
provided. We believe Sanlam to be an excellent new owner for the business and
wish them and all the Management and staff at Principal every good fortune for
- ends -
For further information:
B.P. Marsh & Partners Plc www.bpmarsh.co.uk
Brian Marsh OBE +44 (0)20 7730 2626
Nabarro Wells & Co. Limited (Nominated Adviser)
David Nabarro/Marc Cramsie +44 (0)20 7710 7400
Redleaf Communications (PR to BP Marsh)
Emma Kane/Tom Newman +44 (0)20 7822 0200
Notes to Editors:
About B.P. Marsh & Partners Plc
B.P. Marsh's current portfolio contains ten companies. More detailed
descriptions of the portfolio can be found at www.bpmarsh.co.uk.
Over the past 18 years, the Company has assembled a management team with
considerable experience both in the financial services sector and in managing
private equity investments. Many of the directors have worked with each other in
previous roles, and all have worked with each other for at least three and a
Prior to Brian Marsh's involvement in the Company, he spent many years in
insurance broking and underwriting in Lloyd's as well as the London and overseas
market. He has over 30 years' experience in building, buying and selling
financial services businesses, particularly in the insurance sector.
Managing Director, Natasha Dunbar, has over 10 years' experience in the
financial services industry. Having joined the Company in 1994 she was made
managing director in March 2002. Natasha works closely with Brian Marsh in
defining the strategic development of the Company.
Francis de Zulueta is the Company's Development Director. With a wide-ranging
knowledge of the financial services market, he seeks out, researches and
evaluates potential new investments for B.P. Marsh. Following a 23-year broking
career with Willis Faber and Aon, among others, he took an active interest in
the mergers, acquisitions and venture capital business of Marsh McLennan.
Jonathan Newman is the Group Director of Finance and has over 10 years'
experience in the financial services industry. Jonathan advises investee
companies through several non-executive board appointments and evaluates new
Robert King is a Director and Group Company Secretary. He joined B.P. Marsh in
May 2003 having started his career at PricewaterhouseCoopers. Since joining B.
P. Marsh he has taken on responsibility for the Group's legal, compliance and
secretarial functions and played a key role in the flotation of the Company.
This information is provided by RNS
The company news service from the London Stock Exchange