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21 Jan 2010 07:00
21 January 2010
B.P. Marsh & Partners Plc
Disposal of Entire Stake in JMD Specialist Insurance Services Group Limited
B. P. Marsh & Partners plc ("B.P. Marsh" or the "Company") (AIM: BPM), the niche venture capital provider to early stage financial services businesses, is pleased to announce that it has agreed to dispose of its entire stake in JMD Specialist Insurance Services Group Limited ("JMD") to Randall & Quilter Investment Holdings plc ("R&Q"), the AIM listed run-off management service provider and acquirer of solvent insurance companies in run-off in exchange for a total consideration of 650,000 ordinary shares of 2p each in R&Q ("Consideration Shares"), which at the close of business on 20 January had a value 23% higher than the £569,000 valuation put on JMD as at 31 July 2009 in the Company's accounts. In addition, B.P. Marsh's outstanding loan of £100,000 will be repaid in full in cash on completion.
The Consideration Shares are not subject to any lock-in provisions but the Company's intention is to retain the Consideration Shares.
Additionally under the terms of the transaction Jonathan Newman, Group Director of Finance of B.P. Marsh, will resign as a director of JMD Specialist Insurance Services Group Ltd.
The Board of B.P. Marsh believes the receipt of shares in R&Q is in the best interest of its shareholders and is in line with the Company's strategy of focusing on suitable investments as well as being mindful of value enhancements for the existing portfolio. The disposal of the Company's stake in JMD demonstrates that B. P. Marsh is able to exit investments after short periods whilst generating returns for its shareholders.
Commenting on the disposal, Jonathan Newman, the Company's Nominee Director on the Board of JMD, said:
"We believe that the acquisition of JMD by R&Q will strengthen their service offering and offer further growth opportunities and it is for this reason that we have chosen to hold shares in R&Q. We wish everyone at JMD all the best for the future."
Brian Marsh OBE, Chairman of B. P. Marsh said:
"This transaction marks a further achievement in our strategy to position the Group to deliver long term growth potential for our shareholders and to divest operations that we believe do not meet the criteria of our investment strategy. Whilst we acknowledge that the transaction represents a temporary departure from our traditional strategy of investing in minority stakes of between 20-49% in private financial services companies, we believe the investment in R&Q is in the best interest of shareholders and will add depth to our portfolio."
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For further information:
B.P. Marsh & Partners Plc www.bpmarsh.co.uk
Camilla Kenyon +44 (0)20 7233 3112
Nominated Adviser
Arbuthnot Securities
Nick Tulloch / Ed Gay / Ben Wells +44 (0)20 7012 2000
Notes to Editors:
About B.P. Marsh & Partners Plc
B.P. Marsh's current portfolio contains nine companies. More detailed descriptions of the portfolio can be found at www.bpmarsh.co.uk.
Over the past 19 years, the Company has assembled a management team with considerable experience both in the financial services sector and in managing private equity investments. Many of the directors have worked with each other in previous roles, and all have worked with each other for at least six years.
Prior to Brian Marsh's involvement in the Company, he spent many years in insurance broking and underwriting in Lloyd's as well as the London and overseas market. He has over 30 years' experience in building, buying and selling financial services businesses, particularly in the insurance sector.
Jonathan Newman is the Group Director of Finance and has over 10 years' experience in the financial services industry. Jonathan advises investee companies through several non-executive board appointments and evaluates new investment opportunities.
Robert King is a Director and Group Company Secretary. He joined B.P. Marsh in May 2003 having started his career at PricewaterhouseCoopers. Since joining B.P. Marsh he has taken on responsibility for the Group's legal, compliance and secretarial functions and played a key role in the flotation of the Company.
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