Oakley Capital Investments (OCIL) has announced that Oakley Capital Private Equity II2 (Fund II) has sold a controlling stake in PARSHIP ELITE Group, a leading online dating service in the German-speaking world, to ProSiebenSat.1 Media SE. The transaction reportedly values the business at €300m and OCIL says that this represents a return of 3.6x MM on original investment and an IRR of approximately 150%. Fund II and existing management are retaining stakes that total just under 50% of the Group, which they say will allow them to benefit from further growth and the value of ProSiebenSat.1 ownership
OCIL says that the transaction values its indirect economic interest in PARSHIP ELITE Group at €67m, including its expected net cash returns of approximately €44m. OCIL says that this will result in an expected uplift of £25m (77%) over the carrying value reported on 31st December 2015, which is equivalent to a 9.4p per share increase to the interim NAV range announced in OCL’s NAV trading update released on 4 August 2016. (GBP/EUR: 1.19)
OCIL say that the deal means that, since the initial acquisition 16 months ago, the equity investment has generated a 2.3x cash return and a money multiple of 3.6x overall, including Fund II’s retained stake in the Group. In addition OCIL provided £5.2m of debt to PARSHIP ELITE Group, which it says is to be repaid as part of the transaction.
Oakley Capital Investments sees 9.4p uplift in NAV per share from partial sale of PARSHIP ELITE : OCL