CIP Merchant Capital Ltd Heads of Terms for the fourth investment (6621D)
October 11 2018 - 2:00AM
UK Regulatory
TIDMCIP
RNS Number : 6621D
CIP Merchant Capital Ltd
11 October 2018
11 October 2018
CIP MERCHANT CAPITAL LIMITED
("CIP Merchant Capital" or the "Company")
Heads of Terms for the fourth investment
CIP Merchant Capital is pleased to announce that it has entered
into non-binding conditional heads of terms (the "Heads of Terms")
with 7Star S.r.l. ("7Star"), a private Italian company founded in
December 2016 that seeks to disrupt the veterinary hospital sector
in Italy.
Under the Heads of Terms, CIP Merchant Capital will, subject to,
inter alia, documentation, invest up to EUR2.6 million in 7Star to
acquire an interest of up to 49%. In addition, it is proposed that
the Company will also provide an interest free shareholder loan of
up to EUR3.5 million to 7Star. Under the Heads of terms, the total
investment of EUR6.1 million in 7Star may be syndicated by the
Company and executed in two separate instalments.
7Star commenced operations at the end of October 2017 and
currently operates a veterinary hospital, under the brand Happy
Friends, in Lombardy, North Italy. The proposed investment by CIP
Merchant Capital will be used to finance the expansion of 7Star's
operations through the opening of further veterinary hospitals and
clinics in northern Italy. The founders of 7Star, Chicco Reggiani
and Christian La Monaca, were previously behind CareDent Italia,
which undertook a roll out of dental clinics throughout Italy and
building a market leading market, before being acquired in 2016 and
who are seeking to achieve the same through 7Star in the Italian
veterinary sector.
For the year ended 31 December 2017, having been operating for
only two months, 7Star achieved revenues of EUR0.1 million and had
total assets of EUR1.5 million. In the nine months to 30 September
2018, revenues have grown to approximately EUR0.6 million.
Further announcements will be made as appropriate and subject to
completion, the proposed investment in 7Star will constitute the
Company's fourth investment.
For further information, please contact:
Merchant Capital Manager Limited (Investment Manager)
Marco Fumagalli +41 91 225 25
Carlo Sgarbi 60
Strand Hanson Limited (Financial & Nominated Adviser
and Broker)
Richard Tulloch / James Bellman +44 20 7409 3494
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
This information is provided by RNS, the news service of the
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contact rns@lseg.com or visit www.rns.com.
END
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