Oakley Regulatory News (OCI)

9 Mar 2009 07:00



9 March 2009

Oakley Capital Investments Limited ("OCIL" or the "Company")

Placing to raise £18 million

Intention to apply for a listing on the LSE's Main Market

Oakley Capital Investments Limited (AIM : OCL), the investment company established to provide investors with access to the strategy being pursued by Oakley Capital Private Equity L.P. (the "Oakley Fund") announces a placing to raise gross proceeds of up to £18 million from existing and new institutional investors (the "Placing") at a placing price of 64 pence per share. 

Background to the Placing

The recent economic deterioration in the UK and abroad has presented several investment opportunities to the Oakley Fund as distressed businesses seek capital and pricing expectations fall within target markets. 

As such the Directors consider it in the best interests of shareholders to raise cash at the prevailing market price which, whilst at a discount to the last published Net Asset Value of the Company, will enable OCIL to commit further capital to the Oakley Fund and ensure that it is in an even more favourable position to exploit these investment opportunities. The net proceeds of the Placing will be committed entirely to the Oakley Fund.

Details of the Placing

A total of up to 28,125,000 new ordinary shares of £0.01 each will be issued at a price of 64 pence per share pursuant to the Placing ("Placing Shares"). The Placing Shares will rank pari passu in all respects with the existing issued ordinary shares in the Company.

The Company has entered into a placing agreement with Liberum Capital Limited ("Liberum Capital"), under which Liberum Capital has agreed to use its reasonable endeavours to procure placees for the Placing Shares. Completion of the Placing is conditional, inter alia, on admission to trading on AIM of the Placing Shares. Application for admission to AIM of the Placing Shares has been made and admission and trading is expected to occur on or around 13 March 2008.

Following this transaction, the number of ordinary shares in issue less purchased shares held in treasury will be 120,536,000 and therefore the total number of voting rights in the Company is 120,536,000. 

The Company currently holds a total of 7,589,000 ordinary shares in treasury.

As a consequence of the participation of Invesco in the Placing, a substantial shareholder in the Company, the AiM Rules require that Invesco is considered a related party for the purposes of the Placing. The Directors of the Company, having consulted with Grant Thornton, consider that the terms of the placing to Invesco to be fair and reasonable insofar as shareholders are concerned. Following the Placing, Invesco will have a non beneficial interest in 29.9% of the Company.

Transfer to LSE Main Market

In line with OCIL's development the Company also announces today that, subject to satisfying eligibility criteria, it intends to make an application to obtain a primary listing on the Official List of the Financial Services Authority and to trading on the Main Market of the London Stock Exchange as soon as possible.

Further announcements will be made in due course as appropriate. 

Peter Dubens, Director of OCIL, commented :

"The current economic climate continues to present excellent investment opportunities to the Oakley Fund and I am delighted that existing and new shareholders have supported this fundraising to enable us to exploit them."

For further information please contact: 

Notes:

The Company has been set up to invest primarily in Oakley Capital Private Equity L.P., (the "Oakley Fund") a private equity fund established by a team of experienced investment professionals led by Peter Dubens, executive chairman of FREEDOM4  Group plc and former chairman of 365 Media Group plc.

The Oakley Fund will invest primarily in mid-market buy-outs in the UK and Europe. It will seek to acquire controlling positions in companies with scope for performance improvement, and in industries with strong underlying growth drivers and the potential for consolidation. The Oakley Fund will utilise the investment advisory team's proven ability to self-source transactions and actively manage portfolio companies to improve operational performance. The Oakley Fund will target equity transactions in the range of €30 million to €140 million and will seek to deliver gross IRR on its investments in excess of 25 per cent. per annum and a blended gross multiple of three times.