Sale of Micheldever
ICG Enterprise Trust plc (“the Company”) announces the sale of its investment in Micheldever Group Ltd (“Micheldever”), the second largest distributor of tyres to independent retailers in the UK. The investment was held both directly and through Graphite Capital Partners VI (“Graphite VI”) and was the Company’s largest underlying investment at 31 October 2016. Taken in isolation, the effect of the disposal is to increase the Company’s net asset value per share by 13.2p to 826.7p, equating to a 1.6% increase compared with the value at 31 October 2016.
Graphite VI backed the £84.5 million management buy-in/buy-out of Micheldever in February 2006 and the sale to Sumitomo Rubber Industries Ltd for £215 million represents a return of 3.7 times cost and an uplift of 41% to the gross carrying value at 31 October 2016. The transaction is subject to EU Competition Commission approval and net cash proceeds to the Company of approximately £35.9 million are expected to be received in the quarter to 30 April 2017.
Over the last few years the realisations of investments made since the financial crisis have generated relatively stronger performance than those from vintages before the financial crisis and, pro forma for the sale of Micheldever, post-crisis investments comprise 87% of the Company’s portfolio at 31 October 2016.
The Company’s results for the financial year ended 31 January 2017 will be announced on 18 April 2017.