B.p Marsh Regulatory News (BPM)

12 Feb 2008 07:01

B.P. Marsh & Partners PLC12 February 2008 Date: 12th February 2008On behalf of: B.P. Marsh & Partners Plc ("B.P. Marsh" or the "Company") Embargoed For: 0700hrs B.P. Marsh & Partners PlcSale of investment in Principal Investment Holdings Ltd B.P. Marsh & Partners (AIM: BPM), a niche venture capital provider to earlystage financial services businesses, is pleased to announce today the sale ofPrincipal Investment Holdings Ltd ("Principal"), the specialist investmentmanagement company in which it has an equity investment to Sanlam, a SouthAfrican insurance and financial services group (the "Transaction"). B.P. Marsh'sshare of the consideration will be approximately £7.4 million includingpreferred dividend rights. This deal is expected to complete on 14th March 2008.This consideration compares to a value of £7.371 million attributed to B.P.Marsh's equity investment in Principal on 31st July 2007. Since December 1999, the Company has invested £2.8 million in Principal. Thetotal estimated sale proceeds therefore equate to an investment multiple of 2.64times the Company's equity investment and an investment gain of £4.6 millionbased upon the sale price before any market performance adjustment, describedbelow. Principal was founded in 1987 and provides predominantly discretionary fundmanagement advice through tailored professional investment management servicesto private clients, trusts, charities and a range of corporate customers.Principal achieved an audited pre-tax profit of £2.3 million in the year ended31st December 2006. Unaudited management accounts show a pre-tax profit for theyear ended 31st December 2007 of £2.7 million. B.P. Marsh's consideration will consist of an immediate cash payment oncompletion, subject to an adjustment for debt and expected transaction costs, of£5,797,225, representing 80% of the total anticipated capital consideration, aswell as a preferred dividend entitlement in respect of the year ended 31stDecember 2007 which is estimated to be £170,650. In addition, the Company may, subject to certain conditions, be entitled to afurther capital payment of £1,449,307 (the "Deferred Consideration"), whichrepresents the remaining 20% of its share of the Transaction consideration. TheDeferred Consideration will be payable in two years' time and will be determinedby the performance of the FTSE 100 Index on specific quarter dates during thatperiod relative to the value of the FTSE 100 Index on the date the sale pricewas agreed (6,479 points). It is intended that the Company will invest the proceeds to fund newinvestments, two of which have already been identified and are currentlyundergoing due diligence. Commenting on the sale, Brian Marsh OBE, B.P. Marsh's Chairman, said: "We are delighted to announce our first investment sale since we floated on AIM.We believe the price offers an excellent return for our investors, especiallyconsidering the recent turbulence in the financial markets, and the proceedsraised enables the Company to continue to make new investments where we continueto see many excellent opportunities. We have been investors in Principal since1999 and have thoroughly enjoyed the challenges and opportunities that this hasprovided. We believe Sanlam to be an excellent new owner for the business andwish them and all the Management and staff at Principal every good fortune forthe future." - ends - For further information: B.P. Marsh & Partners Plc www.bpmarsh.co.ukBrian Marsh OBE +44 (0)20 7730 2626 Nabarro Wells & Co. Limited (Nominated Adviser)David Nabarro/Marc Cramsie +44 (0)20 7710 7400 Redleaf Communications (PR to BP Marsh)Emma Kane/Tom Newman +44 (0)20 7822 0200 -ends- Notes to Editors: About B.P. Marsh & Partners Plc B.P. Marsh's current portfolio contains ten companies. More detaileddescriptions of the portfolio can be found at www.bpmarsh.co.uk. Over the past 18 years, the Company has assembled a management team withconsiderable experience both in the financial services sector and in managingprivate equity investments. Many of the directors have worked with each other inprevious roles, and all have worked with each other for at least three and ahalf years. Prior to Brian Marsh's involvement in the Company, he spent many years ininsurance broking and underwriting in Lloyd's as well as the London and overseasmarket. He has over 30 years' experience in building, buying and sellingfinancial services businesses, particularly in the insurance sector. Managing Director, Natasha Dunbar, has over 10 years' experience in thefinancial services industry. Having joined the Company in 1994 she was mademanaging director in March 2002. Natasha works closely with Brian Marsh indefining the strategic development of the Company. Francis de Zulueta is the Company's Development Director. With a wide-rangingknowledge of the financial services market, he seeks out, researches andevaluates potential new investments for B.P. Marsh. Following a 23-year brokingcareer with Willis Faber and Aon, among others, he took an active interest inthe mergers, acquisitions and venture capital business of Marsh McLennan. Jonathan Newman is the Group Director of Finance and has over 10 years'experience in the financial services industry. Jonathan advises investeecompanies through several non-executive board appointments and evaluates newinvestment opportunities. Robert King is a Director and Group Company Secretary. He joined B.P. Marsh inMay 2003 having started his career at PricewaterhouseCoopers. Since joining B.P. Marsh he has taken on responsibility for the Group's legal, compliance andsecretarial functions and played a key role in the flotation of the Company. This information is provided by RNS The company news service from the London Stock Exchange