Gresham House PLC Acquisition of Hazel Capital LLP (0298V)
October 31 2017 - 3:00AM
UK Regulatory
TIDMGHE
RNS Number : 0298V
Gresham House PLC
31 October 2017
31 October 2017
Gresham House Plc ("Gresham House" or "the Company")
(AIM: GHE)
Acquisition of Hazel Capital LLP, Formation of Gresham House New
Energy Division, and Further AUM growth
Gresham House, the specialist alternative asset manager, is
pleased to announce that it has completed the acquisition of the
asset management business of Hazel Capital LLP ("Hazel Capital"), a
leading UK manager of new energy infrastructure. In addition to the
asset management business, Hazel Capital owns and manages several
Energy Storage System or battery storage projects and has
successfully commissioned one of the UK's largest battery storage
facilities near Bristol. Gresham House has also exchanged contracts
to acquire stakes in three of these operational and development
stage battery storage projects, which will align the Company with
the Hazel Capital Management team and its clients.
The total consideration for the acquisition and investment is
GBP2.6 million funded through a combination of cash from the
Company's balance sheet and newly issued shares. This initially
includes GBP600,000 in cash for the acquisition of Hazel Capital's
asset management business plus an investment of GBP2.0 million,
comprised of GBP750,000 in cash and GBP1.25 million satisfied
through the issue of new ordinary shares at the prevailing share
price as at completion of the project investments (the
"Consideration Shares"), (which is expected subject to satisfaction
of a number of conditions precedent).
For the financial year ended 30 April 2017 Hazel Capital's asset
management business generated an operating profit of GBP0.9 million
(excluding all development profits).
In addition, as per the announcement on 17 October 2017, Gresham
House Asset Management, a wholly owned subsidiary of the Company,
has been recommended by the Boards and proposed as investment
advisor, subject to shareholder approval, for two renewable energy
VCTs managed by Hazel Capital. The acquisition of Hazel Capital
will add a portfolio of operating assets which, alongside the VCTs,
will form a new division: Gresham House New Energy.
The new division will, subject to shareholder approval from the
VCTs, have an aggregated AUM in excess of GBP100 million plus a
pipeline of development assets. It will be led by Ben Guest, Hazel
Capital's Managing Partner as well as Bozkurt Aydinoglu and Gareth
Owen, and will leverage the specialist technical and investment
expertise of the team to drive further organic AUM growth within
Gresham House.
Anthony Dalwood, CEO of Gresham House, said:
"The Hazel Capital team's skills and experience will
significantly add to the Gresham House group. Gresham House New
Energy had been identified as a strategic focus for the Company and
we launch with AUM of over GBP100 million into an area with a
significant growth opportunity through renewables and associated
new energy infrastructure. Gresham House New Energy will leverage
the specialist technical and investment expertise of the Hazel
Capital team to drive organic growth, including new product
launches, whilst further diversifying the Gresham House product
portfolio."
Ben Guest, Managing Partner of Hazel Capital, said:
"This is a natural next step for Hazel Capital. Our expertise in
renewables and battery storage will complement Gresham House's
existing strategies of private equity, infrastructure, strategic
public equity and real assets. At the same time, we will gain from
the experience and skills of the wider Gresham House team and will
be able to leverage the resources from being part of the Group's
growing platform for differentiated investment strategies."
Upon completion, application will be made to the London Stock
Exchange for the Consideration Shares to be admitted to trading on
AIM. The Consideration Shares will rank pari passu in all respects
with the existing ordinary shares of the Company. Admission is
subject to the delivery of certain technical and procedural
conditions, and is expected to occur later in 2017.
Enquiries:
Gresham House Plc
Anthony (Tony) Dalwood,
CEO
John-Paul Preston, COO +44 (0)20 3837 6270
Liberum Capital Ltd
Neil Elliot
Jill Li +44 (0)20 3100 2000
Montfort Communications greshamhouse@montfort.london
Gay Collins +44 (0)20 3770 7906
Rory King
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014
This information is provided by RNS
The company news service from the London Stock Exchange
END
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