29 June 2009

Candover Investments plc ("Candover" or the "Company")

Update on strategic review and cessation of Offer Discussions

On 2 March 2009, the Board of Candover announced that it was considering all
strategic options to reinforce the financial position of the Company and
maximise value for shareholders. Since March 2009, the Company has taken a
number of actions to strengthen its overall financial position including:

  * withdrawing from its commitment to the 2008 Fund (the "Fund") which led to
    the Fund's suspension for up to six months from 6 April 2009. As a result
    of Candover's decision not to make any further commitment, discussions are
    now under way between Candover, its wholly owned subsidiary, Candover
    Partners Limited ("CPL") and the Fund's Limited Partners regarding the
    future of the Fund;
   
  * reducing the overall level of working capital and implementing a reduction
    in the Company's headcount (including the closure of Candover Asia and
    Candover Eastern Europe) which will reduce the Company's annual salary
    costs by £7 million; and
   
  * the sale of selected non-core assets not managed by CPL, realising €5.9
    million.
   
On 19 June 2009, Candover announced that CPL had agreed to sell Wood Mackenzie
to Charterhouse Capital Partners for an enterprise value of £553 million. The
sale generated initial proceeds for the Company of £36.2 million. This
comprised cash proceeds of £19.6 million (with the potential for further
proceeds of £1.9 million under a deferred consideration scheme) and an
additional cash payment of £16.6 million as a result of the crystallisation of
carried interest payments from the Candover 2001 Fund. Candover will now
revalue its carried interest entitlements as the crystallisation of the carried
interest will generate incremental cash flow if and when the Candover 2001 Fund
achieves more realisations.

The Board of Candover is confident that the combined effect of these actions,
together with the benefit of the 2001 Fund carry payments which have now
crystallised following the sale of Wood Mackenzie, should mean that Candover
will be in full compliance with the covenant obligations attached to its 2014
loan notes as at 30 June 2009. In addition, the Board is also satisfied that
Candover continues to have adequate capital to meet its follow on commitments to
the 2005 Fund. The Company will announce its half year results for the six
months to 30 June 2009 on 21 August 2009.

On 13 March 2009, the Company announced that it had received indicative
expressions of interest covering a range of options for its business including
potential offers for the Company. Since that time the Company and its advisers
have been engaged in detailed discussions with a number of parties to see
whether an offer for the entire issued share capital of the Company might be
forthcoming which would deliver superior value to shareholders. The Board of 
Candover, after careful consideration of all the options available and taking
account of the progress made in stabilising the overall financial position of
the Company referred to above, has concluded that none of the proposals had
sufficient certainty and value to shareholders to justify further
consideration. Accordingly, all offer discussions have now ceased.

Gerry Grimstone, Chairman of Candover said:

"I am pleased to say that following the sale of Wood Mackenzie and the actions
that we have taken the Company's financial position has strengthened markedly.
The Board is of the view that there is considerable long term value within many
of Candover's portfolio companies which, if realised, should positively
impact Candover's net asset value.

We were very conscious that an offer for the Company which did not recognise
this value would not be in shareholders' interests, nor would other measures
that would result in unacceptable dilution. We are continuing to review
actively whether an alternative ownership structure for Candover Partners
Limited may be merited in the future. A further announcement about this will
be made in due course."



Contact:

Philip Price
Company Secretary, Candover Investments plc
Tel +44 207 489 9848


Susanna Voyle/Peter Hewer
Tulchan Communications Limited
Tel +44 207 353 4200