Duke Royalty Limited Follow-on investment into existing royalty partner (7646J)
December 24 2020 - 2:00AM
UK Regulatory
TIDMDUKE
RNS Number : 7646J
Duke Royalty Limited
24 December 2020
24 December 2020
Duke Royalty Limited
("Duke Royalty", "Duke" or the "Company")
Follow-on investment into existing royalty partner
Duke Royalty Limited (AIM: DUKE), a provider of alternative
capital solutions to a diversified range of profitable and
long-established businesses in Europe and abroad, is pleased to
announce a follow-on investment of EUR1.1 million (GBP1.0 million)
into its existing royalty partner, BHPC Limited ("BHP"). BHP is an
Irish brokerage specialising in the niche not-for-profit insurance
space and has performed resiliently throughout 2020.
Highlights:
-- Funds will provide growth capital to BHP which will position
the business well for the 2021 year as Ireland recovers from
Covid-19
-- The upsize will be completed on the same terms as the
existing facility, which will be accretive to the Duke portfolio as
a whole
-- Since the SIL acquisition of BHP, M&A activity in the
Irish broker market has increased materially pushing acquisition
multiples increasingly higher
-- This capital and the business growth it will facilitate will
further increase the equity value that Duke believes exists in the
business, and where Duke is a 10.5% equity shareholder
-- Duke's original investment into BHP via Capital Step in
August 2019 totalled EUR4.6 million with this investment increasing
Duke's invested capital to EUR5.7 million
-- As a result of resilient performance during the pandemic, BHP
is expected to achieve full-year profitability roughly in-line with
its pre-Covid-19 budget
-- Duke's monthly royalty payments have been unaffected during FY2021
Neil Johnson, CEO of Duke Royalty, said:
"We are delighted to be making this follow-on investment into
BHP and further strengthening the company's balance sheet. BHP
operates in a sector with healthy M&A activity, currently
transacting at multiples well above where BHP was acquired in the
original Duke transaction - we believe BHP has real equity value
and Duke will participate in that upside."
***ENDS***
For further information, please visit www.dukeroyalty.com or
contact:
Neil Johnson / Charlie
Cannon Brookes /
Duke Royalty Limited Hugo Evans +44 (0) 1481 741 240
Cenkos Securities plc Stephen Keys / Callum
(Nominated Adviser Davidson / Julian
and Joint Broker) Morse / Michael Johnson +44 (0) 207 397 8900
Canaccord Genuity Adam James / Georgina
(Joint Broker) McCooke +44 (0) 207 523 8000
Newgate Communications Elisabeth Cowell/ + +44 (0) 20 3757 6880
(PR) Ian Silvera/ Megan dukeroyalty@newgatecomms.com
Kovach
About Duke Royalty
Duke Royalty Limited provides alternative capital solutions to a
diversified range of profitable and long-established businesses in
Europe and abroad. Duke Royalty's experienced team provide
financing solutions to private companies that are in need of
capital but whose owners wish to maintain equity control of their
business. Duke Royalty's royalty investments are intended to
provide robust, stable, long term returns to its shareholders. Duke
Royalty is listed on the AIM market under the ticker DUKE and is
headquartered in Guernsey.
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END
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