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(Alliance News) - Duke Royalty Ltd on Thursday said it has made an approximately GBP7.7 million follow-on investment in Bakhchysarai (Ireland) Ltd with total exposure now standing at GBP9.4 million.
Duke Royalty, a royalty investment firm, said Bakhchysarai will use the GBP7.7 million to buy a 87.5% equity stake in life sciences recruiter PharmEng Ltd.
Bakhchysarai is an investment holding company aimed at buying and developing recruitment firms in Ireland and the UK and already owns recruitment company Brightwater Selection (Ireland) Ltd.
The new investment means Duke Royalty now has a total exposure of GBP9.4 million in Bakhchysarai, with the entire investment subsequently refinanced as a new royalty agreement, replacing the previous perpetual facility. The royalty agreement has "typical Duke investment terms".
Duke Royalty Chief Executive Neil Johnson said: "We are very pleased to support Bakhchysarai in delivering this acquisition, which will not only be immediately accretive to its existing business but will also provide it with significant diversification benefits. Providing existing royalty partners with capital to undertake synergistic transactions is a core part of Duke's investment mandate, and we look forward to a long and successful partnership with Bakhchysarai as it continues to execute its buy and build strategy."
Shares in Duke Royalty were down 1.1% at 46.01 pence in London at midday on Friday.
By Anna Farley; annafarley@alliancenews.com
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