TIDMBOOK
RNS Number : 3351L
Literacy Capital PLC
05 September 2023
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is not for publication, release or distribution in the United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,
Canada, Australia, Japan or the Republic of South Africa.
This announcement contains inside information.
5 September 2023
Literacy Capital plc ("Literacy" or the "Company")
Disclosure of information relating to the sale of Butternut
Box,
which was initially announced on 29 August 2023
Transaction highlights
-- Sale of another of Literacy's largest assets at a substantial
premium; 53.8% above carrying value
-- Literacy sells its entire interest in Butternut Box, receiving GBP21.8m in cash
-- GBP7.6m uplift to the asset's 31 March 2023 carrying value
-- The sale delivers a 10.2x return for shareholders, with no
carried interest payable by Literacy
-- Cash proceeds will be used to repay Literacy's RCF and recycled into new investments
Portfolio update
Literacy is pleased to announce that Butternut Box, a business
providing healthy, fresh dog food on a subscription to dog owners'
homes, has finalised a funding round led by General Atlantic and L
Catterton. This is to raise further equity to support the continued
growth of the business, as well as facilitate the exit of earlier
investors.
The transaction values Literacy's stake in Butternut Box at
GBP21.8 million, a 53.8% premium to the most recent carrying value
of GBP14.2 million. Literacy is selling its stake in Butternut Box
in full as part of the transaction. As a result, it will receive
GBP21.8 million in cash and have no residual interest in Butternut
Box. Literacy's total and final return from this investment is
10.2x cost (IRR: approx. 54%).
On 31 March 2023 (the date of Literacy's most recent quarterly
factsheet and NAV update at the time the transaction was agreed),
Butternut Box was Literacy's fifth largest investment (equating to
5.1% of NAV).
Had Butternut Box been valued on 31 March 2023 in line with the
valuation in this announcement, the Company's estimated net asset
value per share would have been 12.7p per share, or 2.6%, higher at
480.0p (31 March 2023: 467.3p as announced on 27 April 2023).
Literacy intends to use the cash proceeds to fully repay the
amounts drawn under its Revolving Credit Facility, before recycling
these proceeds into new investments. This represents another highly
profitable and successful investment for Literacy, demonstrating
the growing maturity and interest from large institutional
investors in Literacy's portfolio companies. It also shows the
Investment Manager's ability to generate strong returns and
commitment to actively manage the portfolio to recycle proceeds
into new investments in the pipeline.
The growth of the business since Literacy first invested in
January 2018, driven by the team's strong performance, has resulted
in Butternut Box being another successful investment for Literacy,
with this transaction marking a full exit for the fund. Following
the transaction involving Kernel Global in March 2023, this is
another example of the progress made by a portfolio company since
Literacy's investment and the growing interest from larger
third-party investors in the fund's assets. This transaction
provides further comfort regarding the fund's carrying valuations,
with the sale completing at a significant 53.8% premium to the
previously reported carrying value. This follows the sale of Kernel
in March, which delivered a 48.9% uplift.
As recently announced, the transaction exchanged in August with
clearance required from the EU Commission to complete. Completion
and the transfer of cash is expected by the end of October.
Richard Pindar, CEO of the Investment Manager and Director of
Literacy Capital plc, commented:
"When we first met David and Kevin in 2017, Butternut Box was
feeding several hundred dogs. Since then, the progress that the
business has made as a result of the focus and calibre of the team,
has been remarkable. Their commitment to delivering excellent
customer service and products to dog owners, enabling dogs to live
healthy and happy lives, has been unwavering.
"We are extremely proud of the heights the team has been able to
reach since our investment five and a half years ago, with the
business now arguably the leading dog food brand in Europe, and
attracting capital from the largest and most respected, global
institutional investors.
"The cash proceeds from this transaction will be used to pay
down the fund's drawn debt and redeployed into new investments in
our pipeline, where we hope to generate similarly strong returns
for shareholders. As previously indicated, we expected cash inflows
received by the Company in 2023 to be substantially higher than
previous years and we anticipate this will continue for the rest of
the year and into 2024."
Enquiries
For further information, please contact:
Literacy Capital plc / Literacy Capital
Asset Management LLP:
Richard Pindar / Tom Vernon +44 (0) 20 3960 0280
MHP Communications:
Reg Hoare / Ollie Hoare / Matthew Taylor +44 (0) 20 3128 8276
book@mhpgroup.com
Singer Capital Markets Securities Limited:
Robert Peel +44 (0) 20 7496 3000
About Literacy Capital:
Literacy Capital (BOOK.L) is an investment trust that was
launched in 2017 by Paul Pindar and Richard Pindar, before it
listed on the London Stock Exchange's main market in June 2021. The
Company focuses on opportunities to invest for the long-term in
growing private UK businesses where a clear route to creating
additional value can be seen. It also has a unique charitable
objective to donate 0.9% of annual NAV to charities focused on
improving literacy in UK children. GBP7.1 million has been donated
or reserved for donation to charities since the trust's creation in
2017 up until 30 June 2023. For more information, please visit our
website: www.literacycapital.com.
Website:
www.literacycapital.com
LEI: 2549006P3DFN5HLFGR54
A copy of this announcement will be available on the Company's
website at www.literacycapital.com.
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END
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September 05, 2023 02:00 ET (06:00 GMT)
Literacy Capital (LSE:BOOK)
過去 株価チャート
から 4 2024 まで 5 2024
Literacy Capital (LSE:BOOK)
過去 株価チャート
から 5 2023 まで 5 2024