23 Oct 2019 07:00
The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area (other than the United Kingdom and the Republic of Ireland), Canada, Australia, Japan or the Republic of South Africa.
Merian Chrysalis Investment Company Limited
23 October 2019
Merian Chrysalis Investment Company Limited (the "Company")
Portfolio Update
Following the successful Placing under the Company's Placing Programme in September 2019 in which gross proceeds of £175 million were raised (the "Placing"), the Company is today announcing a number of investments.
Investment in Starling Bank
The Company today announces a follow-on investment of £20 million as part of a £30 million funding round conducted by Starling Bank Limited ("Starling").
Richard Watts, co-portfolio manager, comments:
"Starling is already proving to be a disruptive force in the banking industry, with its efficient, user-friendly platform gaining popularity among digitally savvy consumers and businesses. The new capital secured in this funding round will allow its management team to pursue its ambitious development programme and we're delighted that we're able to provide additional backing for this exciting business."
Acquisition of additional shares in existing portfolio companies
As announced in September 2019 at the time of the Placing, the Company intends to use approximately 50% of the Placing's proceeds to scale up its exposure to a number of existing portfolio holdings. This will be achieved via the acquisition of additional interests in those investments from the open-ended UK small- and mid-cap equity funds managed by the Company's Investment Adviser, Merian Global Investors (UK) Limited (the "Transaction") and the follow-on investment in Starling.
The Company can now confirm that it has successfully acquired a further £36.3 million holding in TransferWise Limited ("TransferWise"). These shares were acquired at a modest discount to the latest valuation, as anticipated when the proposed Transaction was previously announced.
The Company can also confirm that it has signed an agreement to acquire a further £20.7 million holding in The Hut Group Limited ("THG"). Completion of this transaction is subject to certain consents being obtained by the Company. It is anticipated that these shares will be acquired at a modest discount to the latest valuation, as previously announced.
Further details relating to the Transaction will be announced in due course. Due to the follow-on capital investment in Starling, the Company does not intend to acquire additional interests in Starling as part of the Transaction.
Update on portfolio composition
Following the completion of the Starling investment and the acquisition of additional shares in TransferWise and THG, the Company will be approximately 65.5% fully invested, with the impacted holdings adjusted as follows:
Portfolio company | Weighting as at 30/08/2019 | Previously announced target weighting¹ | Weighting as at 22/10/2019² |
TransferWise | 13% | 14-16% | 17% |
Starling Bank | 11% | 12-14% | 11% |
The Hut Group | 5% | 8-10% | 8% |
The investment advisory team continues to work on a pipeline of compelling investment opportunities.
Corporate update
Further to the announcement made on 20 June 2019, the Board can today confirm that Nick Williamson, one of the Company's co-managers, has returned from a period of leave. He has resumed portfolio management responsibilities.
-ENDS-
¹ Target weighting in accordance with announcement issued on 10 September 2019.
² 22 October 2019 weightings are based on current portfolio company valuations.
For further information, please contact:
Merian Global Investors: Will Gold / Amelie Shepherd
|
+44 (0) 20 7332 7500
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Liberum: Gillian Martin / Owen Matthews
| +44 (0) 20 3100 2000 |
Maitland Administration (Guernsey) Limited: Aimee Gontier / Elaine Smeja | +44 (0) 1481 749364 |
LEI: 213800F9SQ753JQHSW24
A copy of this announcement will be available on the Company's website at https://www.merian.com/chrysalis/. Neither the content of the Company's website, nor the content on any website accessible from hyperlinks on its website for any other website, is incorporated into, or forms part of, this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.
This announcement may include "forward-looking statements". All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's products and services) are forward-looking statements.
Forward-looking statements are subject to risks and uncertainties and accordingly the Company's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements. These factors include but are not limited to those described in the formal Prospectus. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Listing Rules or Prospectus Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.