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Value Catalyst Fund (VCF)

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Monday 29 November, 2010

Value Catalyst Fund

Sale of TDG Limited

RNS Number : 9530W
Value Catalyst Fund Limited (The)
29 November 2010
 

The Value Catalyst Fund Limited

 

Sale of TDG Limited, major asset of DouglasBay Capital Plc

 

The Directors of The Value Catalyst Fund Limited ("VCF") note the announcement issued this morning by DouglasBay Capital plc ("DBAY"), one of VCF's largest portfolio holdings, worth GBP25.6m as at the 18th November, 2010 - 42.6% of VCF's portfolio.

 

DBAY announced the disposal of TDG Limited, its major investment holding, to Norbert Dentressangle SA for an initial consideration of approximately GBP205m in cash with the precise amount dependent upon the date that closing occurs and closing adjustments. The disposal is conditional only upon competition clearance by the European Commission.  Approval and completion of the transaction is expected between mid January and mid February 2011.

 

If completed, DBAY estimates that following repayment of group debt facilities and transaction costs the company will have cash funds of approximately GBP185m, equivalent to 14.3 pence per DBAY share. Post the transaction, DBAY still retains ex-TDG real estate assets worth approximately 2 pence per share. VCF carries DBAY at cost - 10 pence per share - and the disposal would imply a value uplift of VCF's holding in DBAY in excess of 60%.

 

DBAY is an Isle of Man based investment holding company listed on AIM, majority owned (97.08%) by funds managed by Laxey Partners. In October 2008 it merged with The Laxey Investment Trust PLC a listed vehicle also managed by Laxey Partners and simultaneously acquired TDG Limited.


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