Last checked at 15 Feb 2024 14:31
CPPGroup Plc
("the Group"; or "the Company")
Divestment of minority holding in KYND Limited
CPP Group (AIM: CPP), a provider of real-time, digitally delivered assistance products which reduce disruptions to everyday life for millions of people, has completed the disposal of its minority interest in KYND Limited ("KYND") to V Acquisition Limited, part of the Verisk Analytics, Inc. group ("Verisk"), for cash consideration of £2.6 million (the "Transaction"). The investment in KYND is non-core to the Group following the announcement of its revised strategy and Change Management Programme ("CMP") to transform the Group to an InsurTech business, led by Blink Parametric ("Blink") and supported by CPP India and CPP Turkey.
Background
The Group, in 2018, acquired a 20% shareholding in KYND, a business which provides cyber risk management solutions, for £1.2 million. The Group's shareholding in 2021 reduced to 13.3%, on a fully diluted basis, when the Group decided not to participate in a capital raise by KYND.
At 30 June 2023, the fair value of the Group's balance sheet investment in KYND was £2.0 million. No profit or loss in respect of KYND was recognised in the Group's income statement for the year ended 31 December 2022.
Transaction Rationale
· The Transaction is consistent with the Group's stated strategy to transform the Group to an InsurTech business led by Blink and supported by India and Turkey.
· The Transaction provides a certainty of outcome at an acceptable return.
· The Transaction provides additional cash resources, not previously forecast, to support the CMP and investment in Blink.
Simon Pyper, Group CEO, commented:
"The agreement we have reached with Verisk is consistent with our stated strategy and is another positive step as we simplify the Group and transform to an InsurTech business."
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
Enquiries:
CPPGroup Plc Tel: +44 (0)7917 795601
Simon Pyper, Chief Executive Officer
David Bowling, Chief Financial Officer
Liberum Capital Limited
(Nominated Adviser and Sole Broker) Tel: +44 (0)20 3100 2000
Richard Lindley
Lauren Kettle
About CPP Group:
CPP Group is a technology-driven assistance company that creates embedded and ancillary real-time assistance products and resolution services that reduce disruption to everyday life for millions of people across the world, at the time and place they are needed. CPP Group is listed on AIM, operated by the London Stock Exchange.
For more information on CPP visit https://corporate.cppgroup.com/