TruFin PLC Sale of Majority Holding in Vertus (7422O)
October 05 2023 - 2:00AM
UK Regulatory
TIDMTRU TIDMTRU
RNS Number : 7422O
TruFin PLC
05 October 2023
5 October 2023
TruFin plc
("TruFin" or the "Company")
SALE OF MAJORITY HOLDING IN VERTUS
Further to the Company's announcement on 21 August 2023, TruFin
announces that it has completed the disposal of its 53.8% equity
holding in Vertus Capital Ltd ("Vertus"), a specialist lender to
independent financial advisers, for cash consideration of GBP3.2m
following the acquisition of Vertus by Enable Partners Holdings
Limited ("Enable") (the "Disposal").
For the year ended 31 December 2022, Vertus recorded GBP213k of
profit before tax and contributed GBP162k of profit before tax to
the Company's performance for the year. As at 30 June 2023, the
Company's share of Vertus' net assets and associated goodwill was
GBP3.2m. Proceeds from the disposal will be used to provide
additional working capital for the Company and allow for
incremental capital allocations to Oxygen and Satago based on ROI
expectations.
Watrium AS ("Watrium"), a 22.8% shareholder in the Company, has
co-invested in Enable, alongside Explore Equity II SCSp ("Explore")
as part of the transaction, taking a 48.89% stake in Enable.
Watrium is also a minority LP investor in Explore. By virtue of
Watrium's investment in Enable, the Disposal constitutes a related
party transaction for the purpose of AIM Rule 13 and accordingly,
the Directors of TruFin (other than Anders Wilhelmsen, being a
representative of Watrium on the Board of TruFin) having consulted
with the Company's Nominated Adviser, Liberum, consider that the
terms of the Disposal and Watrium's participation in it are fair
and reasonable insofar as the shareholders of the Company are
concerned.
James van den Bergh, Chief Executive Officer, TruFin, said:
"Oxygen, Satago and Playstack have made strong progress in
executing their strategies over the last 24 months. Oxygen and
Satago are both critical infrastructure software providers whilst
Playstack is a highly focused games publisher with an enviable
pipeline of games secured. The disposal of Vertus, at an attractive
valuation, simplifies and focuses the TruFin business. The sale
proceeds further strengthen TruFin's robust balance sheet as we
look forward to continued momentum at Oxygen, Satago and
Playstack.
It has been a pleasure to work with Matt Marais and his team
over the last few years. Through hard work and entrepreneurship
they have succeeded in building a strong brand as a niche capital
provider to the IFA community, which will act as a springboard for
their exciting expansion plans. We wish Matt, Enable and Watrium
all the best for the future. "
Matt Marais, Chief Executive Officer, Vertus, said:
"We would like to thank James and the TruFin team for their
support and the wise counsel they have provided during their time
as a strategic partner to Vertus. The acquisition by Enable will
provide us with the investment to support the next phase of our
exciting growth plans."
Enquiries:
TruFin plc
James van den Bergh, Chief Executive Officer 0203 743 1340
Kam Bansil, Investor Relations 07779 229508
Liberum Capital Limited (Nominated Adviser and Corporate
broker)
Chris Clarke
Edward Thomas 0203 100 2000
About TruFin plc:
TruFin plc is the holding company of an operating group
comprising four growth-focused technology businesses operating in
niche markets: early payment provision, invoice finance, IFA
finance and mobile games publishing. The Company was admitted to
AIM in February 2018 and trades under the ticker symbol: TRU. More
information is available on the Company website:
www.TruFin.com.
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END
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