13 Nov 2013 07:00
Sherborne Investors (Guernsey) B Limited
13 November 2013
Sherborne Investors (Guernsey) B Limited
Statement re Investment in Selected Target Company
Sherborne Investors Management (Guernsey) LLC (the "Investment Manager"), as the investment manager of SIGB, LP, has informed Sherborne Investors (Guernsey) B Limited (the "Company") that SIGB, LP, in which the Company is a 99.98% limited partner, has partially disposed of its interest in approximately 5% of the shares of 3i Group plc ("3i"). The Investment Manager has further informed the Company that the remaining economic exposure of SIGB, LP to 3i's shares has been offset through the use of derivatives, resulting in an economic net neutral position in 3i shares.
The Investment Manager acquired the 3i stake on behalf of SIGB, LP for an average net cost of approximately 266p per share and the shares and derivatives positions referred to above have a net value to SIGB, LP of approximately 367p per share. The Investment Manager has indicated that it believes that the risk of and rewards from new investments that it has identified offer better returns to the Company's shareholders than a continuing investment in 3i.
In accordance with the partnership agreement of SIGB, LP, the proceeds of realising the investment in 3i, net of incentive payments to Sherborne Investors LP (the "Special Limited Partner"), will be returned to the Company. The Board intends to declare a dividend approximately equal to the net profit generated by SIGB, LP on its investment in 3i, which is currently expected to be 20p per share. The balance of the funds returned will be retained by the Company, pending investment in SIGB, LP to purchase shares in a new Selected Target Company. The Board has been advised that the Investment Manager expects to present to it a new investment opportunity for SIGB, LP in the near future.
-Ends-
Enquiries:
FTI Consulting +44 (0)20 7831 3113
Jonathon Brill
Latika Shah
Jefferies International Limited (Broker) +44 (0)20 7029 8000
Gary Gould
Lee Morton
Graham Hertrich
Sherborne Investors (Guernsey) B Limited +44 (0)14 8171 3843
Talmai Morgan (Chairman)
John Ellman-Brown (Administrator)