Merian Chrysalis Investment Co. Ltd Portfolio Update (3883U)
July 29 2020 - 2:00AM
UK Regulatory
TIDMMERI
RNS Number : 3883U
Merian Chrysalis Investment Co. Ltd
29 July 2020
For immediate release
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is not for publication, release or distribution in the United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 professional investors in the Republic of Ireland),
Canada, Australia, Japan or the Republic of South Africa.
Merian Chrysalis Investment Company Limited
29 July 2020
Merian Chrysalis Investment Company Limited (the "Company")
Portfolio Update
The Company today confirms that the underlying asset referred to
in the announcement dated 20 July 2020 is TransferWise Ltd
("TransferWise"), where it has participated in TransferWise's
US$319 million secondary share sale, which valued the business at
US$5 billion.
The transaction is the first sale conducted by the Company and
has generated a significant return for shareholders. The share
price implied by this transaction represents a gross uplift on the
Company's initial investment price in November 2018 of 2.2x, or
1.7x on an average price basis. The latter implies an internal rate
of return of circa 63% (on a US dollar basis, assuming the new
valuation is applied to the remaining TransferWise holding in the
Company).
As of the Interim Report to 31 March 2020, TransferWise
comprised over 18% of the Company's NAV, and this transaction
represented an opportunity to control the size of the Company's
position at this new valuation; the Investment Advisor continues to
believe in the long-term investment case for TransferWise.
This disposal has increased the Company's available cash balance
by circa GBP20 million to approximately GBP55 million. The
Investment Advisor intends to use the proceeds raised to reinvest
in the portfolio and continues to assess a range of new ideas and
follow-on opportunities.
Nick Williamson, portfolio manager, comments:
"TransferWise has been a very successful investment for Merian
Chrysalis, having delivered a gross valuation uplift of
approximately $50m over our holding period. It still represents a
significant part of our portfolio and we continue to be excited by
growth prospects for the business. Its new valuation demonstrates
the attractiveness to global investors of tech-enabled disruptors
as they scale up, and we're delighted to be able to crystallise
some of this gain for the benefit of our shareholders."
Richard Watts, portfolio manager, adds:
"The sale represents a significant moment for Merian Chrysalis.
In the Interim Report we expressed our aspirations to move into the
Company's second phase, the "growth" phase, with an eye on phase
three - "realisations" - in due course. This transaction has
allowed us to deliver on both of these goals: it has driven NAV
progression, and also demonstrated our ability to recycle capital
to fund future investments in the portfolio."
ENDS
For further information, please contact:
Merian Global Investors:
Amelie Shepherd +44 (0) 20 3817 1686
Liberum:
Gillian Martin / Owen Matthews +44 (0) 20 3100 2000
---------------------
Maitland Administration (Guernsey)
Limited:
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 Regulation Rules of the Financial
Conduct Authority or other applicable laws, regulations or
rules.
This information is provided by RNS, the news service of the
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END
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