Hg sells Eucon – the manager of HgCapital Trust has agreed the sale of Eucon Group to VHV Group, a leading insurance group in Germany. The terms of the transaction were not disclosed. The transaction is subject to customary anti-trust approvals and closing is expected later this year.
This transaction values HGT’s investment in Eucon at approximately £11.5m. This would represent an uplift of £3.9m (51% or 1 pence per share) over the carrying value of £7.6m in the NAV of HGT at 31 August 2020.
Based on the 31 August 2020 reported NAV, the pro-forma NAV of the Trust is expected to be £1.16b (or 285p). HGT’s liquid resources available for future deployment (including all announced transactions and the interim dividend paid in October 2020) are estimated to be £123m (about 11% of NAV). In addition, HGT has access to an £200m standby facility, which is currently undrawn.
Eucon is a leading provider of best-in-class information and data-based systems for efficient product management in the automotive aftermarket. Customers include car manufacturers and suppliers, as well as a variety of workshop chains. For insurers, Eucon digitalises claims management and is one of the sector leaders for digital platform solutions for data and document processing. In addition, Eucon offers digital solutions for the real estate industry for efficient and transparent invoice management.
HGT : Hg sells Eucon