IMAC exits Cream for £13.9m representing 9.1x return
Ingenious Media Active Capital Ltd is pleased to announce that it has successfully sold its investment in Cream Holdings Limited ('Cream'), a live events company based around the Cream electronic music brand. Cream owns and operates the hugely successful Creamfields UK festival, as well as licensed shows overseas and club nights in the UK and Ibiza. IMAC's shareholding in Cream has been acquired by Live Nation Entertainment Inc. ('Live Nation') (NYSE: LYV).
IMAC will receive £13.93m in cash for the sale of its interest in Cream. IMAC holds its ownership position in Cream through its limited partnership position in Ingenious Ventures Limited Partnership ('IVLP'). The net book value of IMAC's investment in Cream as at 31 December 2011 was approximately £6.23m. The transaction results therefore in a gain (and increase in IMAC's net asset value) of £7.70m over the net book value, equivalent to 5.38 pence per IMAC ordinary share. As at 31 December 2011, IMAC's total net assets per share were 22.69 pence (17.99 pence of investments and 4.79 pence of cash). The sale represents a 9.1x return on its investment for IMAC.
The Board intends in due course to distribute the net proceeds from this divestment to IMAC's shareholders in line with IMAC's current investment policy.
Cream made a profit before taxation of £1.42m in the financial year to 31 January 2012.
Patrick Bradley, CEO of Ingenious Ventures (a trading name of the manager to IMAC), said:
"We are extremely pleased to announce the sale of our holding in Cream to Live Nation, which has produced an excellent return for IMAC. We remain committed to actively managing the remaining portfolio, and will seek exits when circumstances are appropriate for each company."
For further information: www.imaclimited.com
Ingenious Ventures - Patrick McKenna / Patrick Bradley 020 7319 4000
Ingenious is a market-leading financial services group providing investment and advisory expertise operating through four divisions. Ingenious is one of the leading investors in the UK's creative industries and was founded by its Chief Executive, Patrick McKenna in 1998.
Ingenious Investments offers a range of alternative investments spanning media and entertainment, sport and leisure and clean energy.
Ingenious Asset Management Limited provides discretionary investment management and innovative solutions to the private investor.
Ingenious Corporate Finance provides comprehensive advice on strategy across a wide range of transactions focusing particularly on the media, entertainment and communications sectors.
Ingenious Ventures is the private equity division of Ingenious.
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