Marywn Value Investors has announced that it is proposing to raise a minimum of £50m through a placing, at a price of 220p per share. The company says that the book-build has secured substantial anchor orders from existing and new shareholders to support the minimum fund raise and that the book will be kept open to enable eligible shareholders to participate. The proceeds are to be invested in full in Marwyn Value Investors LP. The company says that this will allow the “Master Fund” to diversify its portfolio, continue to back experienced management teams with proven track records and target at least five holdings. It will also support follow-on fundraises undertaken by existing portfolio companies whilst broadening the investor base to enhance the size and liquidity of the Company’s share capital.
The Company distributed to shareholders 8p per share in January 2014 and 8.255p per share in January 2015 in accordance with its distribution policy to return a progressive amount each year. In future, the Directors are proposing to divide the single annual capital redemption into four quarterly dividend payments commencing in January 2016. They say that the total annual amount will be a minimum of 8.255p pence per share paid quarterly, which will remain progressive in nature. The company says that an increasing contribution is anticipated from the underlying yield of the Master Fund’s portfolio. The company also say that these quarterly dividends may be augmented by additional special distributions arising following disposals of portfolio assets under the Company’s net capital gains distribution policy. Furthermore, the Company is proposing to make a special distribution of 2 pence per share in January 2016. This will be available to both existing shareholders and participants in the Proposed Placing. This is in addition to the 24.6p that shareholders received in October 2015.
The Proposed Placing, together with the change in distribution policy and the special distribution, will be subject to shareholder approval.
Marwyn Value Investors to raise a minimum £50m, new distribution policy : MVI