Partial disposal of shares in Hyperion
B.P. Marsh & Partners Plc
Partial disposal of shares in Hyperion
B.P. Marsh & Partners Plc (AIM: BPM), ("B.P. Marsh" or the "Company"), a niche venture capital provider to early stage financial services businesses, is pleased to announce that its wholly owned subsidiary, B.P. Marsh & Company Limited, has sold 1,193,500 shares in Hyperion Insurance Group Limited ("Hyperion") for a cash consideration of £4,535,300, representing an IRR of 40.4% on these shares since they were acquired in November 1994. B.P. Marsh & Company will retain a 16.19% shareholding in Hyperion, having reduced its 18.94% stake by 2.75%.
The shares have been sold to an existing Hyperion shareholder, Murofo Investments S.L., increasing their shareholding to 14.46%, from 11.71%. The Company considers Murofo a valuable co-investor in Hyperion.
Commenting, Brian Marsh OBE, said:
"We are in the business of backing entrepreneurs. We are not short-term traders; we work with businesses, provide follow-on investment and help them to achieve their long term goals. Hyperion is an excellent example of our approach, demonstrating the merit of 17 years of continuous partnership. We believe that this transaction is in the best interests of our shareholders, enabling the Company to repay its debts and support growth in our other investee companies, and solidifying the value of our remaining Hyperion shares at a value that exceeds our entire current market capitalisation."
"We are excited by the possibilities for Hyperion over the coming months and years and look forward to continuing to support Management in their ambitions and working with them to achieve their aims, in the same way as we have done throughout our partnership."
The B.P. Marsh Board took the opportunity to sell approximately 15% of its holding in Hyperion and agreed to proceed for the following reasons:
· the price of 380p per share was considered to be acceptable, allowing for a discount of 1.6% against the Company's valuation of 386p at 31st July 2011 for payment in cash;
· to provide funds for follow-on investment to promote growth and expansion within the Company's portfolio of investee companies and to ensure funds are available for new opportunities;
· to provide the Company with cash to enable it to repay the £1m outstanding Directors' Loan and consider a dividend;
· to enable the Company to continue to support management through its significant 16.19% shareholding in Hyperion whilst releasing the Company's cumulative equity investment to date; and
· the transaction is pro-rata ex-dividend.
B.P. Marsh has held an investment in Hyperion for over 17 years. The Company's initial investment of £25,000 was made in November 1994 and in the intervening years the Company has provided follow-on funding of £4,320,403. At 31st July 2011, the Company's most recent published valuation, a value of £31,748,000 was attributed to the Company's 19.5% stake.
Hyperion has continued to achieve its growth aspirations, increasing its total revenue by 21% for the year ended 30th September 2011 and earning a 'top 40' position in The Sunday Times Deloitte Buyout Track 100. Hyperion continues to perform exceptionally well and has announced its intention to seek a stockmarket listing in 2013.
B.P. Marsh & Company Limited's rights and protections as a major shareholder will not be affected by the disposal and Jonathan Newman will remain as the Company's nominee director on the Board of Hyperion.
B.P. Marsh will announce its final results on 30th May 2012.
17 May 2012
For further information:
B.P. Marsh & Partners Plc www.bpmarsh.co.uk
Brian Marsh OBE / Camilla Kenyon +44 (0)20 7233 3112
Nominated Adviser & Broker
Panmure Gordon
Paul Lumbis / Fred Walsh +44 (0)20 7459 3600
Redleaf Polhill Ltd +44 (0)20 7566 6738
Emma Kane bpmarsh@redleafpolhill.com
Notes to Editors:
About B.P. Marsh
B.P. Marsh's current portfolio contains nine companies. More detailed descriptions of the portfolio can be found at www.bpmarsh.co.uk.
Over the past 20 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 four years.
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.
Jonathan Newman is a Chartered Management Accountant and is the Group Director of Finance and has over 14 years' experience in the financial services industry. Jonathan advises investee companies through three non-executive board appointments and evaluates new investment opportunities.
Daniel Topping is a Member of the Chartered Institute of Securities and Investment (MCSI) and an Associate Member of the Institute of Chartered Secretaries and Administrators (ACIS) having joined the Company in 2007. Dan was appointed director in 2011 and currently holds four non-executive board appointments through which he advises investee companies and he also evaluates new investment opportunities.
Camilla Kenyon was appointed as Head of Investor Relations at B. P. Marsh in February 2009, having four years prior experience with the Company. Camilla holds two non-executive appointments, is Chair of the New Business Committee and is a Member of the Investor Relations Society.
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