Acquisition
June 04 2010 - 4:46AM
UK Regulatory
TIDMHGT
RNS Number : 0800N
HG Capital Trust PLC
04 June 2010
HgCapital Trust plc
The acquisition, subject to regulatory approval, of a majority stake in Manx
Telecom by HgCapital on behalf of its clients has been announced today.
HgCapital manages the investment portfolio of HgCapital Trust plc alongside
those of other institutional clients. The Trust, which is a listed investment
trust giving private and institutional investors the opportunity to participate
in all HgCapital's investments, will contribute approximately GBP11 million
which represents 15% of HgCapital's total investment.
HgCapital acquires majority stake in Manx Telecom
London, 4 June 2010: HgCapital, the European sector focused private equity
investor, is pleased to announce that it has today acquired a majority stake in
Manx Telecom, the Isle of Man's largest telecommunications and internet
provider.
The total enterprise value of the transaction is GBP158.8 million and the
acquisition is being completed alongside CPS Partners, a specialist
international telecommunications management company. The acquisition is expected
to be completed by the end of June 2010 subject to local regulatory clearance.
Manx Telecom is a wholly owned subsidiary of Telefónica and offers the full
range of fixed line, mobile and data services to consumers and businesses. It
has a successful track record in achieving major industry breakthroughs - it was
the first company in Europe to launch a live 3G service and also launched
Europe's first commercial High Speed Downlink Packet Access (HSDPA) service.
Manx Telecom continues to support the Isle of Man Government's e-business
strategy of developing a world-class telecommunications infrastructure to
attract companies and investment to the island. The company employs 300 people
and reported revenues of GBP69 million, with EBITDA of GBP25 million, in the
year ended 31 December 2009.
Commenting on the investment, Alex King, Head of TMT at HgCapital, who led the
transaction, stated: "While economies across Europe continue to be in a state of
flux, the Isle of Man has proved an excellent base for companies, boasting over
25 years of unbroken GDP growth. It has a diversified economy coupled with an
educated and skilled workforce. Furthermore, the Isle of Man has invested
heavily in electronic services, for which the island has achieved a global
reputation.
"Manx Telecom has a superb record of sustainable organic growth. The company
also has an excellent management team to whom we will provide our full backing
in taking the business forward. We see this as very much a growth investment for
HgCapital and will continue to invest in supporting the organic growth of the
business and in the form of bolt on acquisitions. This is another investment
consistent with our strategy of backing resilient growth companies."
Simon Cunningham, Partner at CPS added: "This is the first collaboration between
CPS and HgCapital and we are delighted to be involved. Both companies enjoy best
in class reputations based on a long track record of investment and operational
success, it is a great combination. We look forward to working with Chris Hall,
Manx Telecom Managing Director and all his team in continuing the development
and success of the company."
Chris Hall, Managing Director at Manx Telecom, said, "We are delighted that
HgCapital and CPS Partners have chosen to make this significant investment in
Manx Telecom, and in the Manx economy. This is a huge endorsement of our track
record in building a world class company, and a vote of confidence in the future
of the business. We are extremely excited to have the opportunity to work with
such professional and dynamic partners, each of whom have the skills and
experience required to ensure that we can continue to develop the Isle of Man's
class leading telecoms infrastructure, and help us to maximise the potential of
our global off-Island business."
- Ends -
For further details:
+---------------+--------------+--------------------+
| HgCapital | Alex King | +44 (0)20 7089 |
| | | 7889 |
+---------------+--------------+--------------------+
| Maitland | Neil Bennett | +44 (0)20 7379 |
| | | 5151 |
+---------------+--------------+--------------------+
| | Rowan Brown | +44 (0)20 7379 |
| | | 5151 |
+---------------+--------------+--------------------+
About HgCapital
HgCapital is a sector focused private equity investor in the European
mid-market. We focus on investments with an enterprise value in the range of
GBP50-GBP500 million. Our business model combines sector specialisation with
dedicated, pro-active support to our portfolio companies as well as the
corresponding management expertise across all phases of the investment process.
HgCapital manages GBP3 billion for some of the world's leading institutional and
private investors.
For further details, see www.hgcapital.com
About HgCapital Trust plc
HgCapital Trust plc is an investment trust whose shares are listed on the London
Stock Exchange. The trust gives investors exposure to a portfolio of high-growth
private companies, through a liquid vehicle. This portfolio is managed by
HgCapital, an experienced and well-resourced private equity firm with a
long-term track record of delivering superior risk-adjusted returns for its
investors. The Trust has won the Investment Week Private Equity Investment Trust
of the Year every year since 2005.
For further details, see www.hgcapitaltrust.com
About Telefonica / Telefonica Europe
Telefónica is one of the world's largest telecommunications operators by market
capitalisation. Its activities are centred mainly on the fixed and mobile
telephony businesses, with broadband as the key tool for the development of
both. It has a significant presence in 25 countries and a global customer base
of 273 million. Telefónica's growth strategy is focused on the markets in which
it has a strong foothold: Spain, Europe and Latin America. Telefónica is a 100%
private sector company with its shares listed in Madrid and other stock
exchanges and more than 1.5 million individual shareholders.
About CPS Partners
CPS Partners is a telecommunications management company founded in 2006,
consisting of a team of highly experienced telecommunications executives. Its
two partners collectively have 30 years of international telecommunications
experience, managing both incumbents and competitive new entrants. The business
has a strong focus on island and small country telco's, including previous
responsibilities for telecommunications businesses in Guernsey, Monaco, Bahrain,
Bermuda, Barbados, the Maldives, the Seychelles and Macau. CPS Partners acts
jointly with private equity firms or other investors active in the
telecommunications sector.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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