Full Sale of Department Store Holding
September 21 2010 - 10:58AM
UK Regulatory
TIDMARCH
RNS Number : 0632T
ARC Capital Holdings Limited
21 September 2010
21 September 2010
ARC Capital Holdings Limited
Full Realisation of Investment in the Department Store Holding
ARC Capital Holdings Limited ("ARCH") (AIM: ARCH), is pleased to announce that
it has completed the sale of its equity investment in the Department Store
Holding (the "Company"). This follows ARCH's partial realisation of 46.3% of its
holding in the Company announced on 3 September 2010. The final sale of its
equity investment in the Company to private parties through a securities broker
was completed on 16 September 2010. ARCH received RMB214.6 million (equivalent
to US$61.5 million) in cash for the sale of its remaining 53.7% of the Company.
Together with the previously announced partial realisation, ARCH received total
consideration of RMB750.6 million (equivalent to US$110.8 million) in cash, a
US$7.1 million increase from the 31 July 2010 NAV report which valued the
investment at US$103.7 million. The sale, in combination with past dividend
payments, represent a 5.9x cash multiple and an IRR of 77.0%.
The Company is a leading provincial department store chain in Central China, in
which ARCH invested US$19.1 million in July 2007.
As realisation proceeds are in RMB, repatriation of the funds could take up to
six months due to foreign exchange controls in China. A portion of the realised
proceeds has been processed for repatriation and should be available in the
coming weeks. As and when the funds are available to ARCH, they will be applied
in accordance with the guidelines announced on 1 April 2009, namely to use
substantially all proceeds (in the form of principal and profits) from
realisations to fund distributions to shareholders through share buy-backs,
tender offers or capital distributions, subject to serving existing payables and
funding contractual follow-on commitments to the current portfolio.
In accordance with the guidelines, ARCH will continue to cease to make any new
investments until the Independent Directors determine otherwise. The Independent
Directors will determine (i) whether to approve funds to be used to make
follow-on investments; and (ii) when new investments may be made. In making
these determinations, the Independent Directors will have regard to the
alternative use of funds in effecting shareholder distributions, including the
potential short-term increase in NAV per share that may result from share
buybacks.
A further announcement will be made in due course as to the method, extent and
timing, if any, of distributions to shareholders.
For more information, please contact:
+---------------------------------+------------------------------+
| MANAGER: | LEGAL COUNSEL: |
| Allan Liu, Managing | Jon Lewis, General |
| Partner | Counsel |
| c/o ARC Capital Partners | c/o Pacific Alliance |
| Limited | Group |
| 13/F St. John's Building | 16/F St. John's Building |
| 33 Garden Road, | |
| Central, Hong Kong | 33 Garden Road, |
| T: (852) 3115 0243 | Central, Hong Kong |
| F: (852) 3115 0244 | T: (852) 2918 0088 |
| aliu@pacific-alliance.com | F: (852) 2918 0881 |
| | jlewis@pacific-alliance.com |
| | |
+---------------------------------+------------------------------+
| BROKER: | NOMINATED ADVISER: |
| Hiroshi Funaki | Philip Secrett |
| LCF Edmond de Rothschild | Grant Thornton Corporate |
| Securities | Finance |
| T: (44) 20 7845 5960 | T: (44) 20 7383 5100 |
| F: (44) 20 7845 5961 | Philip.J.Secrett@gtuk.com |
| funds@lcfr.co.uk | |
+---------------------------------+------------------------------+
| MEDIA RELATIONS: | MEDIA RELATIONS: |
| Sophie Hoggarth | Andrew Walton / Laura |
| Pacific Alliance Group | Pope |
| T: (86) 21 6113 5818 | Financial Dynamics, |
| shoggarth@pacific-alliance.com | London |
| | T: (44) 20 7269 7100 |
| | |
| | Christine Wood / Queenie |
| | Tsao |
| | Financial Dynamics, Asia |
| | T: (852) 3716 9800 |
+---------------------------------+------------------------------+
About ARC Capital Holdings Limited
ARC Capital Holdings Limited ("ARCH") (AIM: ARCH) is a closed-end investment
company with net assets of US$607.1 million as at 31 July 2010. ARCH was
admitted to trading on the AIM Market of the London Stock Exchange in June 2006.
ARCH makes and holds investments in the retail, consumer goods and consumer
services sectors, principally in China but also in neighboring Asian countries.
Target investments include regional hypermarkets and supermarkets, dominant
consumer brands, specialty retail chains, retail property assets and retail and
consumer service providers.
For more information about ARCH, please visit: www.arch-fund.com
ARC Capital Holdings Limited is a member of Pacific Alliance Group ("PAG"), one
of the leading Asian alternative investment managers. Founded in 2002, PAG
manages funds covering private equity, real estate, hedge fund and distressed
investments and has offices across Asia including Hong Kong, Shanghai, Beijing
and Tokyo.
For more information about PAG, please visit: www.pacific-alliance.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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