Electra Private Equity PLC (“Electra”) is pleased to announce the valuation impact of the Initial Public Offering (“IPO”) of UK motor insurer esure, its third largest investment at 30 September 2012.
In February 2010, Electra invested £30 million (via the Tosca Penta Investments LP fund) in the management buyout of esure from Lloyds Banking Group, led by Peter Wood, founder and Executive Chairman of esure. To date, £15.3 million of Electra’s original investment has been repaid.
As a result of esure’s IPO, Electra is due to receive further cash proceeds of £51.5 million which represent the repayment of the remaining prior ranking capital, the yield thereon, and the sale of ordinary shares. In addition, Electra (via its holding in the Tosca Penta Investments LP fund) will hold 6.19 million ordinary shares in esure which are subject to over-allotment or lock-up arrangements. At the IPO price, these shares have a valuation of £17.9 million.
This represents an uplift in Electra’s diluted NAV per share of 33p from the audited accounts at 30 September 2012, as well as the Interim Management Statement at 31 December 2012.