LONDON, October 23, 2014 /PRNewswire/ --
TETRAGON FINANCIAL GROUP LIMITED
ANNOUNCEMENT
TFG today announces the entry into definitive agreements to
acquire Equitix Holdings Limited ("Equitix") from Cabot
Square Capital LLP for an enterprise value of £159.5 million (the
"Acquisition").
- Equitix is an integrated core infrastructure asset management
and primary project platform that currently manages in excess of £1
billion of investor capital across three 25-year core
infrastructure funds focused on mid-size infrastructure projects
and two energy-efficiency funds.
- Equitix and its current 50+ member team - all of whom are
expected to continue in the business post-Acquisition - have been
directly responsible for leading, bidding, winning and closing in
excess of 20 infrastructure projects in the United Kingdom, and have raised over £3
billion of debt and equity since inception in 2007.
- The enterprise value represents approximately a
five-times multiple of management's estimated calendar 2015
EBITDA.
- TFG has agreed to acquire 85% of the company on the closing
date with a broad Equitix management group owning the balance,
thereby maintaining a significant portion of their current
ownership.
- The Equitix management team are committed to the long term
success of the business and their ownership will increase over time
to incentivise long-term alignment.
- The Acquisition is subject to regulatory approval and certain
other conditions and the purchase price is subject to adjustment
until the closing date. There are also certain post-closing
increases to the purchase price of up to a maximum of £15 million,
payable in early 2017 to the extent the company outperforms its
business plan.
- The acquisition is expected to be financed with debt and
equity.
Equitix was founded in 2007 by Geoff
Jackson, Nick Parker and
Hugh Crossley, all long-term
practitioners in the infrastructure industry who have been actively
involved in Public Private Partnership procurement since inception
of the initiative in the United
Kingdom. Equitix also works with partners, advisors
and government bodies to identify, develop and manage primary
projects that fit the investment criteria of the Equitix funds.
The Acquisition enables TFG to benefit from its ownership of the
Equitix business as well as to potentially expand its investment
portfolio to cover infrastructure assets - in Equitix funds and as
well as in one-off investments or co-investments. TFG
believes that there is substantial growth and performance potential
in both the asset class and the asset management business and that
the existing management team will be able to continue to grow the
business. As a long-term investor with permanent capital and with a
desire to invest in Equitix and its funds, TFG is highly aligned
with Equitix, its investors and its operating partners in this
effort.
The Acquisition will continue the diversification of TFG's
investment portfolio, and is consistent with its goals to add new
asset classes and new asset managers to TFG Asset Management, TFG's
asset-management platform.
Paddy Dear, a Principal of TFG's
investment manager and a Director of TFG, said, "We are delighted
to be buying Equitix and be partners with Geoff, Nick, Hugh and
their talented team. We strongly believe in the asset class,
the asset management skills of the team and the long-term growth
potential of the business."
Geoff Jackson, CEO of Equitix,
added, "We are very pleased to have found TFG as a new owner and
partner in our business. We believe their permanent capital, their
long-term vision and their strategic thinking should benefit
Equitix, our investors, our infrastructure operating partners and
our employees."
The Acquisition will also be a topic on the Q3 2014 Investor
call, which is scheduled for 12 November
2014.
About Tetragon:
TFG is a Guernsey closed-ended company traded on Euronext
Amsterdam N.V. under the ticker symbol "TFG" that aims to provide
stable returns to investors across various credit, equity, interest
rate and real estate cycles. The company maintains two key business
segments: an investment portfolio and an asset-management platform.
Both segments cover a broad range of assets including bank loans,
real estate, equities, credit and convertible bonds. For further
information, please contact:
TFG:
David Wishnow/Greg Wadsworth
Investor Relations
ir@tetragoninv.com
Press Inquiries:
Sard Verbinnen & Co.
+1-212-687-8080
tetragon-svc@sardverb.com
This release does not contain or constitute an offer to sell or
a solicitation of an offer to purchase securities in the United States or any other jurisdiction.
The securities of TFG have not been and will not be
registered under the U.S. Securities Act of 1933 (the "Securities
Act"), as amended, and may not be offered or sold in the United States or to U.S. persons unless
they are registered under applicable law or exempt from
registration. TFG does not intend to register any portion of
its securities in the United
States or to conduct a public offer of securities in
the United States. In
addition, TFG has not been and will not be registered under the
U.S. Investment Company Act of 1940, and investors will not be
entitled to the benefits of such Act. TFG is registered in
the public register of the Netherlands Authority for the Financial
Markets under Section 1:107 of the Financial Markets Supervision
Act ("FMSA") as a collective investment scheme from a designated
country. This release constitutes regulated information
("gereglementeerde informatie") within the meaning of Section 1:1
of the FMSA.
PRN NLD
SOURCE Tetragon Financial Group Limited