17 Feb 2021 14:25
17 February 2021
TRIAN INVESTORS 1 LIMITED(the "Company")
Net Asset Value as at 31 January 2021
Trian Investors 1 Limited is pleased to announce its Net Asset Value as at 31 January 2021 was £383 million, or 144.9 pence per Ordinary Share.
Company Hedging Activities
As the Company has previously noted in its financial reports, Ferguson plc ("Ferguson") receives the vast majority of its revenues and profits in U.S. Dollars and therefore, from the perspective of a Pound Sterling investor, the Company's Ferguson investment may be adversely affected by the appreciation of Pounds Sterling against the U.S. Dollar. In order to mitigate this risk, the Company through Trian Investors 1, L.P. (the "Investment Partnership") entered into a currency hedge in March 2020, in the form of an option (the "March 2020 Option") to purchase £125,000,000 Pounds Sterling for US$165,875,000, to offset a portion of the Company's U.S. Dollar exposure resulting from its investment in Ferguson. The March 2020 Option was originally scheduled to expire in March 2021.
In light of the strengthening of Pounds Sterling against the U.S. Dollar over the past several months, the Company through the Investment Partnership recently took advantage of attractive pricing conditions and sold the March 2020 Option for £5,200,000. Simultaneously, the Company through the Investment Partnership entered into a new option (the "February 2021 Option"), which expires in 12 months, to purchase £125,000,000 Pounds Sterling for US$181,250,000, for a premium of £1,743,750. Taken together, these two transactions were designed to allow the Company to recognize cash proceeds of £3,456,250 on a net basis, while still providing it with protection against significant further appreciation of Pounds Sterling against the U.S. Dollar during the next 12 months. However, there is no assurance that the February 2021 Option will be effective at managing the Company's currency exposure.
For further information, please contact:
Numis Securities Limited
(Joint corporate broker)
+44 (0)20 7260 1000
David Benda
Jefferies International Limited
(Joint corporate broker)
+44 (0)20 7029 8000
Stuart Klein
Ocorian Administration (Guernsey) Limited(Administrator and Company Secretary)+44 (0)1481 742 742Ian Smith