15 Sep 2008 07:00
15 September 2008
Trikona Trinity Capital PLC
("Trikona TC" or "the Company")
Trikona TC strengthens strategic partnership with SachsenFonds
Trikona Trinity Capital PLC (AIM: TRC), a fund created for investing in Indian infrastructure and real-estate, and managed by Trikona Capital, is pleased to announce further details of a third transaction with SachsenFonds Holdings GmbH ("SF"), part of Kanam Gruppe, a leading German fund manager with €15 billion assets under management, as outlined in a Memorandum of Understanding earlier this month.
As part of the deal, arranged over two tranches, Trikona TC will divest a further part of its existing portfolio share holdings to SF for a consideration of up to £48.08 million and co-invest up to £39.70 million in new development projects.
Existing portfolio divestment
Under the terms of the transaction, and as part of the first tranche due to close by 17 October 2008, Trikona TC will divest part of its equity share holdings in three of its off-shore entities to SF: Development Project 1, 2 and 10 for an initial consideration of
£32.05 million, creating a gain of 126%. As part of the second tranche, due to close by 31 March 2009, SF will further acquire up to £16.03 million in the three entities bringing the total value of the sell-down to a maximum consideration of £48.08 million.
This transaction brings the total proceeds from the three portfolio sales to SF to over £130 million with an average cash-on-cash gain of 117%. In December 2007, the Company completed its first divestment to SF for an aggregate sale price of £32.11 million, and in June 2008, Trikona TC announced a two-part transaction to divest further assets to SF for an aggregate sale price of £54.10 million, together with a total co-investment of £20.04 million on a 55:45 basis (SF:Trikona TC).
New development projects
The transaction involves investments in four new projects: Sankalp Buildwell Private Limited ("Sankalp"), Jodhana Developers Private Limited ("Jodhana"), Enigma Constructions Private Limited ("Virar") and Horizon Countrywide Logistics Limited ("HCLL"). Trikona TC will initially invest £24.68 million in these projects and SF's initial co-investment will be £15.02 million. In the second tranche, Trikona TC will sell part of its stakes in Sankalp, Jodhana and Virar to SF in return for an aggregate consideration of up to £7.51 million, bringing SF's total co-investment to a maximum of £22.52 million and Trikona TC's investment to £17.18 million.
SF and Trikona TC will own the following proportions of the projects during tranche 1 and tranche 2 of the transaction:
| Mauritian Entity | Trinity (Sixteen) | Trinity (Seventeen) | Trinity (Eighteen) | Trinity (One) | Trinity (Three) | Trinity (Fourteen) | Trinity (Four) |
| Underlying Development Asset | SankalpBuildwell (Sankalp) | Jodhana Developers (Jodhana) | Enigma Constructions (Virar) | Development Project 1 | Development Project 2 | Development Project 10 | Horizon Countrywide Logistics |
| Trikona TC Ownership in Underlying Development Asset | NA | NA | NA | 100% | 16% | 49.4% | 13.4% |
| Trikona TC Original Ownership in the Mauritian Entity | NA | NA | NA | 100% | 100% | 100% | 100% |
| Trikona TC remaining ownership in the Mauritian Entity post SF-1 and SF-2 | NA | NA | NA | 67% | 100% | 85% | 100% |
| Trikona TC percentage ownership in the Mauritian Entity post Tranche 1 SF-3 | 47% | 47% | 47% | 52% | 49% | 73% | 100% |
| Trikona TC Net investment in the Mauritian entity post Tranche 1 SF-3 | 2,102,690 | 5,840,805 | 5,373,541 | NA | NA | NA | 11,285,266 |
| SF percentage ownership in the Mauritian Entity post Tranche 1 SF-3 | 53% | 53% | 53% | 48% | 51% | 27% | NA |
| SF Net investment in the Mauritian entity post Tranche 1 SF-3 | 2,371,118 | 6,586,440 | 6,059,525 | 12,703,752 | 11,782,147 | 7,566,701 | NA |
| Trikona TC percentage ownership in the Mauritian Entity post Tranche 2 SF-3 | 20.5% | 20.5% | 20.5% | 44.5% | 23.5% | 67.0% | 100% |
| Trikona TC Net investment in the Mauritian entity post Tranche 2 SF-3 | 917,131 | 2,547,585 | 2,343,779 | NA | NA | NA | 11,285,266 |
| SF percentage ownership in the Mauritian Entity post Tranche 2 SF-3 | 79.5% | 79.5% | 79.5% | 55.5% | 76.5% | 33% | NA |
| SF Net investment in the Mauritian entity Tranche 2 SF-3 | 3,556,678 | 9,879,660 | 9,089,287 | 19,055,628 | 17,673,221 | 11,350,052 | NA |
Aashish Kalra, Managing Director of Trikona Capital, said: "We are very pleased to have successfully completed the third stage of our portfolio sales to SachsenFonds, which have now realised proceeds of over £130 million at a cash-on-cash multiple of 117%. This deal demonstrates our execution capability in India, the strength of our partnership with SF and confirms our ability to create significant value for our shareholders."
Notes:
Exchange Rate is 1.2546 Euro = 1 GBP
Exchange Rate is 80.759 INR = 1 GBP
- ENDS -
Enquiries:
Trikona Trinity Capital PLC managed by Trikona Capital Limited
Aashish Kalra, Managing Director +91 11 4659 6000
Sally Lewis, Director of Investor Relations +44 750 7683 720
Bell Pottinger Corporate & Financial +44 207 861 3232
Mike Davies/ Sarah Williams
Numis Securities +44 207 260 1000
NOMAD: Lee Aston, Head of Corporate Finance
Corporate Broking: Charles Farquhar
Fairfax I.S. PLC +44 207 598 5368
Paul Richards, Head of Corporate Finance
About Trikona Trinity Capital PLC:
Trikona Trinity Capital PLC (AIM: TRC) was listed on the London Stock Exchange as Trinity Capital in 2006, raising £250m of equity. The fund invests in real estate and infrastructure related entities across India, with a target size of between £5m and £30m per transaction. Trikona TC selects developers with a proven track record in the asset class or in the local market, with the specific notion of contributing to India's growth. The Company also adopts a socially aware attitude to development, investing in projects which will actively improve India's underdeveloped social and physical infrastructure. The Company is managed by Trikona Capital, a leading fund manager focused on investing in Indian real estate and infrastructure.
www.trikonatrinitycapitalplc.com