TIDMMERI
RNS Number : 1614Z
Merian Chrysalis Investment Co. Ltd
16 September 2020
The information contained in this announcement is restricted and
is not for publication, release or distribution in the United
States of America, any member state of the European Economic Area
(other than the Republic of Ireland), Canada, Australia, Japan or
the Republic of South Africa.
This announcement contains inside information.
16 September 2020
Merian Chrysalis Investment Company Limited (the "Company" or
"Merian Chrysalis")
The Hut Group IPO Update
The Company notes today's flotation of The Hut Group plc ("THG")
on the London Stock Exchange. The Board and the Investment Adviser
would like to congratulate THG's management on a process that has
seen significant global interest in its Initial Public Offering
("IPO").
Due to its presence on the shareholder register of THG, and its
ability to underwrite a substantial part of the IPO, the Company's
Investment Adviser, Merian Global Investors (UK) Limited ("MGI")
was named as one of five global cornerstone investors, securing an
allocation of GBP90 million. Given its ability to provide its own
crossover offering, the Company can today confirm that it is
investing approximately GBP14.4 million via the IPO, as part of
MGI's allocation.
As noted in the Net Asset Value ("NAV") announcement issued on 1
September 2020, the impact of revaluing THG at the IPO price,
versus the carrying value as of 30 June 2020, is an uplift of
approximately 17%. At the IPO price, the Company's THG holding will
be approximately GBP79 million, and the increase to the Company's
NAV per share is approximately 2.8p on a gross basis, compared with
the previously reported NAV per share of 137.26p as of 30 June
2020.
Liquidity position
In its NAV announcement of 1 September 2020, the Company
disclosed a gross cash position of approximately GBP54 million.
Following the recent investment in Klarna Holding AB, announced on
15 September 2020, and THG, the Company's approximate gross cash
position is currently GBP16 million.
Following THG's IPO, the total liquidity position of the Company
- defined as gross cash plus listed assets - has now improved to
approximately GBP95 million, based on THG's IPO price.
Background
Merian Chrysalis was set up to pursue a crossover investing
strategy, allowing late-stage, private-growth businesses access to
a different type of capital - one that supports them to make the
transition to a listed environment. THG's IPO marks the first of
the Company's portfolio assets to make the move to public markets
and represents a significant milestone in the Company's
development, as well as a tangible endorsement of the
attractiveness of the Company's offering for investee
businesses.
The Investment Adviser's engagement with THG started in early
2017. In October 2017, a number of MGI's open-ended UK small- and
mid-cap equity funds made a significant injection of primary
capital, amounting to approximately GBP125 million, to help THG
continue its strategy of acquiring beauty brands to leverage its
infrastructure platform (Ingenuity). Following subsequent
investments, both primary and secondary, the total MGI investment,
at cost, has been approximately GBP175 million, prior to the
IPO.
THG formed part of Merian Chrysalis's "seed portfolio" shortly
after its IPO in late 2018, with a subsequent further addition in
October 2019. Over the approximately two years that the Company has
owned THG, it has delivered an internal rate of return of circa
82%, based on THG's IPO valuation.
Richard Watts, co-manager of Merian Chrysalis comments:
"We have been very proud to support Matt Moulding and his team
as they have developed a world-class business and are delighted to
continue the journey with them as THG moves into the listed arena.
The penetration of online retail continues to accelerate, and we
believe THG's unique proposition, offering both market-leading
lifestyle brands and providing e-commerce infrastructure to third
parties, means it is well positioned to continue benefiting from
this trend."
Nick Williamson, co-manager of Merian Chrysalis adds:
"THG's flotation is a significant and exciting moment in the
development of Merian Chrysalis. It represents the portfolio's
first IPO and also demonstrates the strength of our crossover
proposition, both in supporting companies as they navigate the
listing process, but also in capturing significant value for
investors who have traditionally found it difficult to access
private markets."
-ENDS-
For further information, please
contact:
Merian Global Investors:
Amelie Shepherd +44 (0) 20 3817 1000
Liberum:
Gillian Martin / Owen Matthews +44 (0) 20 3100 2000
Maitland Administration (Guernsey)
Limited:
Elaine Smeja +44 (0) 1481 749364
LEI: 213800F9SQ753JQHSW24
A copy of this announcement will be available on the Company's
website at https://www.merian.com/chrysalis/ .
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