Mercia Asset Management PLC Sale of The Native Antigen Company (4559S)
09 Julio 2020 - 1:00AM
UK Regulatory
TIDMMERC
RNS Number : 4559S
Mercia Asset Management PLC
09 July 2020
RNS 9 July 2020
Mercia Asset Management PLC
("Mercia" the "Company" or the "Group")
Sale of The Native Antigen Company
Mercia Asset Management PLC (AIM:MERC), the proactive,
regionally focused specialist asset manager, is pleased to announce
the profitable sale of The Native Antigen Company Limited ("NAC")
to LGC, a global leader in the life sciences tools sector, for a
total cash consideration of up to GBP18.0million.
Mercia held a 29.4% fully diluted direct holding in NAC at the
date of sale and will receive initial cash proceeds of
GBP4.8million, with up to a further GBP0.4million receivable upon
finalisation of customary closing working capital calculations.
Based upon the total anticipated amount receivable of
GBP5.2million, the total realised return above the GBP2.7million
holding value as at 30 September 2019, will be a further
GBP2.5million. Of this, GBP0.6million will be included as a fair
value increase in the Group's results for the year end ended 31
March 2020, which will be announced on 14 July 2020. The remaining
balance of GBP1.9million will be recognised as a realised gain in
the Group's interim results for the six months to 30 September
2020.
The sale is anticipated to generate an 8.4x return on its
original direct investment cost and a 65% internal rate of return
("IRR").
Mercia first invested in NAC in 2011 through its third-party
managed funds (which as at 31 March 2020 held an additional
combined 20.9% stake) and subsequently, from its own balance sheet
as a direct investment in December 2014.
In addition to the direct investment returns, the sale will
generate a 12.1x return on a blended third-party managed funds
investment cost and a 31% funds IRR. Mercia has proactively
supported NAC since its first day of trading, including
representation from Mercia's Chief Operating Officer Peter Dines,
as a non-executive director on the NAC board through to exit.
Founded in 2010, as a divestiture from a University of
Birmingham spinout company, NAC has become one of the world's
leading suppliers of infectious disease reagents and is widely
acknowledged to be a primary source of reagents for the study of
emerging diseases.
Dr Mark Payton, Mercia Asset Management, CEO, said : "Keeping to
our commitment of realising balance sheet investments within a
three to seven year period from initial investment, NAC is the
fourth full cash exit from our direct investment portfolio. It has
been an excellent investment for Mercia and this sale is a strong
demonstration of the value which our differentiated model can
create; for investors in our managed funds, shareholders in Mercia
and the founders we back. NAC is an example of an innovative
regional business sourced through Mercia's network, supported
initially by our managed fund capital and then scaled using our own
balance sheet capital.
"Mercia plays a critical role in helping the UK's most exciting
regional businesses scale and I am proud of the part we have played
in NAC's journey, not just as the major capital provider but also
as a critical partner in helping the business achieve its
potential. I look forward to watching as they continue to go from
strength to strength with their new owner."
Ends
For further information, please contact:
Mercia Asset Management PLC
Mark Payton, Chief Executive Officer
Martin Glanfield, Chief Financial Officer +44 (0)330 223
www.mercia.co.uk 1430
Canaccord Genuity Limited (NOMAD and Joint +44 (0)20 7523
Broker) 8000
Simon Bridges, Richard Andrews
N+1 Singer (Joint Broker)
+44 (0)20 7496
Harry Gooden, James Moat 3000
+44 (0)20 3727
FTI Consulting 1051
Tom Blackwell, Louisa Feltes, Antonia Powell
mercia@fticonsulting.com
About Mercia Asset Management PLC
Mercia is a proactive, specialist asset manager focused on
supporting regional SMEs to achieve their growth aspirations.
Mercia provides capital across its four asset classes of balance
sheet, venture, private equity and debt capital: the Group's
'Complete Connected Capital'. The Group initially nurtures
businesses via its third-party funds under management, then over
time Mercia can provide further funding to the most promising
companies, by deploying direct investment follow-on capital from
its own balance sheet.
The Group has a strong UK regional footprint through its eight
offices, 19 university partnerships and extensive personal
networks, providing it with access to high-quality deal flow.
Mercia currently has c.GBP800million of assets under management
and, since its IPO in December 2014, has invested over GBP90million
across its direct investment portfolio.
Mercia Asset Management PLC is quoted on AIM with the epic
"MERC".
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END
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