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Electra’s Park resorts to merge with Parkdean holidays

Electra Private Equity has announced the proposed merger, subject to regulatory approval, of its Park Resorts Group (Park Resorts, South Lakeland Parks and Southview and Manor Park) with Parkdean Holidays creating a nationwide operator with 73 sites. The transaction gives the enlarged company an enterprise value of £960m and combined EBITDA in excess of £100m. The merger valuation of Electra’s debt and equity interests implies an uplift of £21m, which is equivalent to an increase in diluted NAV per share of 52p, compared to the 31 March 2015 valuation of £239m and net investment since that date of £24m.

On completion of the transaction a new £550 million debt facility arranged by Barclays, RBS and JP Morgan will be used to refinance existing debt facilities including those in which Electra has invested, resulting in expected cash proceeds to Electra of £96m. This takes total cash proceeds, received by Electra to £106m, or 81% of original investment cost. Upon completion, Electra will own an equity interest of 45% in the combined group alongside the management team and other shareholders.

Electra’s Park resorts to merge with Parkdean holidays : ELTA

 

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