Press release
For immediate release on 6th April 2009
Candover Investments plc - Interim Management Statement
The information contained herein is not for publication or distribution to
persons in the United States of America. Any securities referred to herein
have not been and will not be registered under the U.S. Securities Act of 1933,
as amended (the "Securities Act"), and may not be offered or sold without
registration thereunder or pursuant to an available exemption therefrom. Any
public offering of securities to be made in the United States would have to be
made by means of a prospectus that would be obtainable from the issuer or its
agents and would contain detailed information about the issuer of the
securities and its management, as well as financial statements. Neither this
document nor the information contained herein constitutes an offer to sell or
the solicitation of an offer to buy any securities. These materials do not
constitute an offer of securities for sale in the United States. No money,
securities or other consideration is being solicited, and, if sent in response
to the information contained herein, will not be accepted.
Candover Investments plc ("Candover" or the "Company") today issues
its Interim Management Statement in accordance with FSA Disclosure and
Transparency Rule 4.3. This statement which, as usual, is unaudited, relates
to the three month period from from 1st January, 2009 to 31st March, 2009.
Commenting on the statement Gerry Grimstone, Chairman of Candover, said
"The Board of Candover is committed to putting the Company on a firm financial
footing so that the value in our funds, including Candover's share of the
carried interest in those funds, can be maintained and realised for
shareholders. We have now reached formal agreement with the Limited Partners of
the 2008 Fund for that Fund to suspend its investment activity for up to six
months while we explore all the strategic options available and continue to
stabilise our financial position."
Strategic Review
On 2nd March 2009 as part of its preliminary results announcement for the year
ended 31st December 2008, the Board of Candover announced that it was
undertaking a review of its strategic options. In particular, given the impact
on Candover's financial position of the unprecedented global economic
developments which occurred during the latter part of 2008, the immediate focus
was to reinforce the financial position of the Company.
As part of the Board's plan to reinforce the Company's financial position,
agreement has now been reached for the 2008 Fund to be suspended for up to six
months from 6 April, 2009. The principal terms of the standstill agreement are
that no new investments will be made by the 2008 Fund during the standstill
period and the fees payable by Limited Partners in the 2008 Fund to Candover
will be set by reference to the 2008 Fund's existing investment in Expro
International rather than total commitments.
Subsequent to the preliminary results announcement the Board confirmed on 13th
March, 2009 that it had received indicative expressions of interest covering a
range of options for the business including potential offers for the Company.
Candover may enter into preliminary discussions with selected parties in due
course but emphasizes that there can be no certainty as to the outcome of such
discussions. Further announcements will be made as appropriate.
Portfolio valuation and performance
Candover's investment portfolio, which comprises both direct investments and
investments made alongside funds managed by its wholly-owned subsidiary,
Candover Partners Limited, was last valued as at 31st December, 2008. The net
asset value per share as at that date was 1026p. Since that date there have
been no new investments and no realisations.
The next valuation will be conducted as of 30th June 2009, and consistent with
its valuation policy the Company will continue to apply earnings based
valuations to portfolio businesses and will appropriately value the carried
interest of the Company in the respective funds. Whilst the economic climate
remains challenging, many of the portfolio companies continue to perform
robustly.
Publication of Report and Accounts and Annual General Meeting
Copies of Candover's Annual Report and Accounts for the year to 31st December,
2008, incorporating the Notice of Annual General Meeting and form of proxy,
have been submitted to the UK Listing Authority and will shortly be available
for inspection at the UK Listing Authority's Document Viewing Facility at The
Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14
5HS (Tel: +44 20 7066 1000).
Copies of the Annual Report and Accounts 2008 and the Notice of Annual General
Meeting will shortly be available on the Company's website at
www.candoverinvestments.com.
The Annual General Meeting of Candover Investments plc will be held on
Wednesday 13th May, 2009.
Changes to Company Secretariat
Philip Price was appointed Company Secretary and General Counsel of Candover
Investments plc on 25th February, 2009, following Andrew Moberly's resignation
as Secretary.
Ends.
For further information, please contact:
Candover Investments plc +44 20 7489 9848
Philip Price , Company Secretary and
General Counsel
Tulchan +44 20 7353 4200
Susanna Voyle / Peter Hewer
Lexicon Partners +44 207 653 6000
Matthew Lindsey- Clark
Merrill Lynch +44 207 995 7555
Mark Astaire
Matthew Blawat
Note: This statement aims to give an indication of material events and
transactions that have taken place during the period from 1st January, 2009 to
31st March 2009 and their impact on the financial position of Candover
Investments plc. These indications reflect the Board's current view. They are
subject to a number of risks and uncertainties and could change. Factors which
could cause or contribute to such differences include, but are not limited to,
general economic and market conditions and specific factors affecting the
financial prospects or performance of individual investments
2
Candover T +44 (0) 20 7489 9848 Registered in
Investments plc England No.
F +44 (0) 20 7248 5483 1512178 at the
20 Old Bailey
E info@candover.com address shown.
London EC4M 7LN An investment
company
within the
meaning of part
VIII of the
Companies Act
1985.