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(Alliance News) - Duke Royalty Ltd on Thursday said it has made a follow-on investment of EUR1.1 million into its existing royalty partner, BHPC Ltd, an Irish brokerage.
The financing provider said the investment will provide growth capital to BHPC, which will position the business well for 2021 as Ireland recovers from Covid-19.
Duke's original investment into BHPC was in August 2019, totalling EUR4.6 million, with the investment announced on Thursday increasing Duke's invested capital to EUR5.7 million.
As a result of resilient performance during the pandemic, BHPC is expected to achieve full-year profitability roughly in-line with its pre-Covid-19 budget, Duke Royalty said.
"We are delighted to be making this follow-on investment into BHP and further strengthening the company's balance sheet," said Chief Executive Neil Johnson.
"BHP operates in a sector with healthy mergers & acquisitions activity, currently transacting at multiples well above where BHP was acquired in the original Duke transaction - we believe BHP has real equity value and Duke will participate in that upside," added Johnson.
AIM-listed Duke Royalty shares were trading 4.0% higher in London on Thursday at 30.95 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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