Disposal (1404U)
December 16 2011 - 6:00AM
UK Regulatory
TIDMILV1
RNS Number : 1404U
Ingenious Live VCT 1 plc
16 December 2011
Ingenious Live VCT 1 plc
Ingenious Live VCT 1 plc to Exit Creamfields Festival
Investment
Ingenious Live VCT 1 plc (ILV1) today announces along with
Ingenious Live VCT 2 plc (ILV2) that they have agreed terms to exit
from their combined investment in the Creamfields festival for a
total consideration of GBP2.78 million.
The deal will see The Cream Group's festival vehicle, C.I.
(Events) Limited, acquire the whole of the share capital of CFDT
Limited, a company which was set up by ILV1, ILV2, The Young Vic
Company and C.I. (Events) Limited in 2008 to help promote the
festival when it switched from being a one day to a weekend camping
event.
The Creamfields UK festival has performed strongly over the last
few years with the August 2011 festival selling out in advance of
the event, for the third year running, despite an increase in
capacity from 40,000 the previous year to 50,000 per day.
Under the proposed exit deal, C.I. (Events) Limited will acquire
the shares of ILV1, ILV2 and The Young Vic Company for a total
aggregate consideration of GBP1.084 million and will also repay the
loan notes that were issued to ILV1 and ILV2 under the original
investment deal in the aggregate amount of GBP1.19 million, along
with a premium of GBP510,000 (i.e. GBP255,000 payable to each of
ILV1 and ILV2, respectively). ILV1 (along with ILV2) will also
retain a share of further upside over the two years following the
completion of the deal, in the event that there is a sale of the
Creamfields brand for an amount in excess of an agreed exit
multiple.
It is anticipated that the exit will give rise to a special
dividend in excess of 20p being paid to shareholders of ILV1 (and
ILV2) in February 2012.
The terms of the exit have been approved by the board of ILV1 as
it approaches its fifth anniversary, with a view to delivering
strong returns to its shareholders in line with its stated five
year liquidity strategy. The deal will represent a significant
return on ILV1's original investment in Creamfields.
The VCT currently retains investments in a number of other
festival brands such as Rewind and Field Day, as well as
exhibitions such as Taste of Christmas and Golf Live.
For further information please contact:
Sarah Cruickshank
Company Secretary
Ingenious Live VCT 1 plc
15 Golden Square
London W1F 9JG
020 7319 4000
For Press Inquiries please contact:
MHP Communications
Reg Hoare / Barnaby Fry / Simon Hockridge / Giles Robinson
Tel: 020 3128 8100
ingenious@mhpc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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