The Income & Growth VCT plc ("I&G VCT" or the "Company")
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) no. 596/2014
Realisation of investment in Entanet Holdings Limited
5 July 2017
The Board is pleased to draw your attention to an announcement made this morning by AIM quoted CityFibre Infrastructure Holdings plc ("CityFibre"). The announcement discloses CityFibre's conditional agreement to purchase the entire issued share capital of Entanet Holdings Limited, an I&G VCT portfolio company, for a consideration of £29 million, on a debt free and cash free basis. £7.08 million is payable in cash to I&G VCT on completion, while £0.74 million is deferred consideration potentially payable over the next two years. This agreement is conditional upon CityFibre raising the funds to finance this acquisition by a Capital Raising, also referred to in their announcement this morning. Completion of this sale is anticipated on or before 4 August 2017.
Assuming the sale of this investment completes, the Board believe that its impact upon the net asset value ("NAV") of I&G VCT would be an increase of an estimated 5.06 pence per share over the NAV per share last announced as at 31st March 2017 of 96.43 pence (93.43 pence when adjusted for a 3.00 pence interim dividend subsequently paid on 20 June 2017). In addition, if deferred consideration is eventually received, it would result in a further estimated increase in NAV of 1.01 pence per share.
Upon completion and excluding deferred consideration, the transaction would deliver to the Company a realised gain over cost of £3.90 million, being 5.38 pence per share.
The transaction involves all four Mobeus advised VCTs. Upon completion, and excluding deferred consideration of £2.20 million, total cash proceeds received by the four Mobeus advised VCTs over the life of their investment in Entanet Holdings Limited would be £23.97 million, against an original investment of £9.50 million. This would represent a return of 2.52 times the original cost for each VCT and an IRR of 38% in the three and a half years that this investment was held.
Over and above the impact of this disposal, as of today's date, the Board is unaware of any matter that would cause a material change in the Company's net asset value per share.
The Board advises shareholders that it will be announcing an updated NAV per share for I&G VCT as at 30 June 2017, as part of its Interim Management Statement to shareholders, in September 2017.
For further information, please contact:
Robert King, for Mobeus Equity Partners LLP, Company Secretary 020 7024 7616
