TIDMMERI
RNS Number : 7673Q
Merian Chrysalis Investment Co. Ltd
23 October 2019
The information contained in this announcement is restricted and
is not for publication, release or distribution in the United
States of America, any member state of the European Economic Area
(other than the United Kingdom and the Republic of Ireland),
Canada, Australia, Japan or the Republic of South Africa.
Merian Chrysalis Investment Company Limited
23 October 2019
Merian Chrysalis Investment Company Limited (the "Company")
Portfolio Update
Following the successful Placing under the Company's Placing
Programme in September 2019 in which gross proceeds of GBP175
million were raised (the "Placing"), the Company is today
announcing a number of investments.
Investment in Starling Bank
The Company today announces a follow-on investment of GBP20
million as part of a GBP30 million funding round conducted by
Starling Bank Limited ("Starling").
Richard Watts, co-portfolio manager, comments:
"Starling is already proving to be a disruptive force in the
banking industry, with its efficient, user-friendly platform
gaining popularity among digitally savvy consumers and businesses.
The new capital secured in this funding round will allow its
management team to pursue its ambitious development programme and
we're delighted that we're able to provide additional backing for
this exciting business."
Acquisition of additional shares in existing portfolio
companies
As announced in September 2019 at the time of the Placing, the
Company intends to use approximately 50% of the Placing's proceeds
to scale up its exposure to a number of existing portfolio
holdings. This will be achieved via the acquisition of additional
interests in those investments from the open-ended UK small- and
mid-cap equity funds managed by the Company's Investment Adviser,
Merian Global Investors (UK) Limited (the "Transaction") and the
follow-on investment in Starling.
The Company can now confirm that it has successfully acquired a
further GBP36.3 million holding in TransferWise Limited
("TransferWise"). These shares were acquired at a modest discount
to the latest valuation, as anticipated when the proposed
Transaction was previously announced.
The Company can also confirm that it has signed an agreement to
acquire a further GBP20.7 million holding in The Hut Group Limited
("THG"). Completion of this transaction is subject to certain
consents being obtained by the Company. It is anticipated that
these shares will be acquired at a modest discount to the latest
valuation, as previously announced.
Further details relating to the Transaction will be announced in
due course. Due to the follow-on capital investment in Starling,
the Company does not intend to acquire additional interests in
Starling as part of the Transaction.
Update on portfolio composition
Following the completion of the Starling investment and the
acquisition of additional shares in TransferWise and THG, the
Company will be approximately 65.5% fully invested, with the
impacted holdings adjusted as follows:
Portfolio company Weighting Previously Weighting
as at 30/08/2019 announced as at 22/10/2019(2)
target weighting(1)
TransferWise 13% 14-16% 17%
Starling Bank 11% 12-14% 11%
The Hut Group 5% 8-10% 8%
The investment advisory team continues to work on a pipeline of
compelling investment opportunities.
Corporate update
Further to the announcement made on 20 June 2019, the Board can
today confirm that Nick Williamson, one of the Company's
co-managers, has returned from a period of leave. He has resumed
portfolio management responsibilities.
-ENDS-
(1) Target weighting in accordance with announcement issued on
10 September 2019.
(2) 22 October 2019 weightings are based on current portfolio
company valuations.
For further information, please
contact:
Merian Global Investors:
Will Gold / Amelie Shepherd +44 (0) 20 7332 7500
Liberum:
Gillian Martin / Owen Matthews +44 (0) 20 3100 2000
Maitland Administration (Guernsey)
Limited:
Aimee Gontier / Elaine Smeja +44 (0) 1481 749364
LEI: 213800F9SQ753JQHSW24
A copy of this announcement will be available on the Company's
website at https://www.merian.com/chrysalis/. Neither the content
of the Company's website, nor the content on any website accessible
from hyperlinks on its website for any other website, is
incorporated into, or forms part of, this announcement nor, unless
previously published by means of a recognised information service,
should any such content be relied upon in reaching a decision as to
whether or not to acquire, continue to hold, or dispose of,
securities in the Company.
This announcement may include "forward-looking statements". All
statements other than statements of historical facts included in
this announcement, including, without limitation, those regarding
the Company's financial position, business strategy, plans and
objectives of management for future operations (including
development plans and objectives relating to the Company's products
and services) are forward-looking statements.
Forward-looking statements are subject to risks and
uncertainties and accordingly the Company's actual future financial
results and operational performance may differ materially from the
results and performance expressed in, or implied by, the
statements. These factors include but are not limited to those
described in the formal Prospectus. These forward-looking
statements speak only as at the date of this announcement. The
Company expressly disclaims any obligation or undertaking to update
or revise any forward-looking statements contained herein to
reflect actual results or any change in the assumptions, conditions
or circumstances on which any such statements are based unless
required to do so by the Financial Services and Markets Act 2000,
the Listing Rules or Prospectus Rules of the Financial Conduct
Authority or other applicable laws, regulations or rules.
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END
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