Over the course of 2015, Marwyn Value Investors’ NAV decreased by 19.39% to 239.16 pence. The reduction in NAV over the year is primarily attributable to falls in the share prices of Entertainment One Limited (“eOne”), Zegona Communications and Marwyn Management Partners, partially offset by gains in the share prices of BCA Marketplace (formerly Haversham Holdings) and Gloo Networks.
The disposal of the final stake in eOne completed in September. Having been the largest shareholder since IPO, with board positions throughout, the sell down of the position began in July 2015 through a structured process, and a final exit in September. The exit generated total gross aggregate proceeds of £229.9m (of which, £165.4m was attributable to the Company), crystallising a cash multiple of 4.3x and an IRR of 20.8%. Following the disposal, £15.3m was returned to the Company’s shareholders.
Zegona, a group formed by Eamonn O’Hare (Chairman and CEO) and Robert Samuelson (COO), was launched in March undertaking an initial capital raise and flotation on AIM. Zegona was established with the support of Marwyn and other leading investors to acquire businesses with an enterprise value of between £1bn and £3bn in the European TMT sector. Marwyn invested £12m in the IPO.
A further £55m was invested in Zegona in July as part of Zegona’s equity placing to acquire Telecable De Asturias S.A., the leading “quad-play” telecommunications operator in Asturias, North West Spain, for an enterprise value of EUR640m, taking the Company’s indirect holding in Zegona to 23.8% of the entire issued share capital. Following the Telecable acquisition, Zegona’s shares were moved from AIM to the standard listing segment of the Official List of the LSE in September.
Gloo was launched in August undertaking an initial capital raise and flotation on AIM with the support of Marwyn (investing £10m on IPO) alongside other blue-chip institutional investors. Gloo is a technology company that aims to connect some of the world’s most-loved content with its most-valued consumers. The Gloo management team of Rebecca Miskin (CEO) and Juan Lopez-Valcarcel (COO) were joined by Arnaud de Puyfontaine who was appointed as Chairman in December.
An additional £10m was invested in BCA as part of the placing to fund the £1.3bn acquisition of the BCA Group of companies. Following completion of the acquisition, BCA’s shares were moved from AIM to the standard listing segment of the Official List of the LSE.
MVI : Marwyn NAV falls in 2015