QuotedData’s morning briefing 24 September 2021

In QuotedData’s morning briefing 24 September 2021:

• Nippon Active Value Fund (NAVF) has published its interim results for the 6 months to 30 June 2021. Over the period, NAVF’s NAV per share and share price total return had increased by 10.1% and 17.5% respectively, while its discount narrowed from 6.2% to 2.6%. In comparison, the MSCI Japan Small Cap Index rose by 1.4% over the same period. The report says that short term market performance continued to be influenced by news flow regarding the COVID-19 pandemic and progress with vaccine development and rollout. NAVF has a concentrated portfolio invested in smaller companies which appear to be valued significantly more cheaply than the market as a whole. Most of the target companies have large holdings of cash and cash equivalents on their balance sheets and the manager believes this should perform well even in challenging market and economic conditions. At the end of June 2021, 92.5% of the Company’s IPO proceeds was invested.
• Gore Street Energy Storage Fund (GSF) has announced that the PrimaryBid Offer (limited to EUR 1,163,005, or the equivalent) closed early at 2pm on 23 September 2021 as a result of oversubscription. However, GSF says that its non pre-emptive placing of up to 67,883,824 new ordinary shares (at a price of 107.0p per share) remains open. The result of the placing is still expected to be announced on 30 September 2021.
• Harworth Group (HWG) has received planning permission for the regeneration of the former Ironbridge Power Station in Shropshire into a mixed-use development comprising up to 1,000 new homes, alongside a range of commercial, leisure and community uses. The 350-acre former Ironbridge Power Station site was acquired by Harworth in June 2018 from Uniper plc, having previously been used for electricity generation for over 80 years. Demolition works are due to complete by the end of this year and the development will then be delivered in phases over 10 to 15 years.
• Phoenix Spree Deutschland (PSDL) has reported a 2.7% increased in EPRA net tangible assets (NTA) per share in the six months to 30 June 2021 to €5.42. With dividends, this resulted in a NAV total return of 3.6% for the period. The increase in use mainly due to a 2.5% hike in the value of its Berlin residential portfolio on a like-for-like basis.

We also have annual results from New Star (it benefited from its allocations to UK smaller companies and emerging markets but was hurt by those to dollar cash and gold equities), as well as the publication of a IPO prospectus by Castlenau Group for a listing on the SFM

• From yesterday: Oryx International Growth Fund (OIG), which is managed by Harwood Capital, has announced a number of major liquidity events that total £43m. These are:
  • the offer for Augean plc at 372pps. When the acquisition is completed this will add circa £30m to the company’s cash resources. The offer represents a 9.4x return on OIG’s investment over a four year period.
  • Hamsard Limited is being sold for £2.2m, with the cash proceeds expected to be received by the end of this month.
  • Minds + Machines Group Limited having sold its business is being liquidated with approximately a further £8m in cash expected.
  • BigBlu Broadband has announced a return of 45pps which will add a further £3.1m.  
• In a similar vein to OIG above, North Atlantic Smaller Companies (NAS), also managed by Harwood Capital, has announced a number of major liquidity events. In the case of NAS, the transactions listed below, along with two other small transactions, should result in nearly £100m of additional liquidity by Christmas. The events are as follows:
  • the offer for Augean plc at 372pps. When the acquisition is completed this will add circa £63m to NASCIT’s cash resources. The offer represents a 10.7x return on NSA’s investment over a four-year period.
  • Hamsard Limited is being sold for circa £20m (including proceeds from Harwood Private Equity Fund IV) with the cash proceeds expected to be received by the end of this month.
  • Sportech Plc is tendering for approximately half the company which will release a further £6m in the short term.
  • BigBlu Broadband plc is distributing 45 pence per share, which will add a further £4m in cash.
• 3i Infrastructure (3IN) has announced that it has entered into an agreement to sell its 45% stakes in four European liquid storage terminals to Evos through its entity Evos Finance B.V., who will also acquire the 55% stakes in the terminals held by co-shareholder Oiltanking GmbH (“Oiltanking”). The four terminals are Oiltanking Amsterdam B.V., Oiltanking Ghent N.V., Oiltanking Malta Limited and Oiltanking Terneuzen B.V., which collectively provide 3.8 million cubic metres of liquid storage capacity and associated services to a wide range of customers. Following completion of this transaction, 3i Infrastructure will retain its 45% stake in Oiltanking Singapore Limited, alongside Oiltanking’s 55% stake. The sale is conditional on certain third party consents, with completion expected to occur in Q4 2021. The proceeds from the transaction will be used to repay debt and related break costs of 3i Infrastructure’s holding company, Oystercatcher. The balance of the proceeds will be distributed to 3i Infrastructure, which we estimate will not exceed c.€50 million. The company says that the sale price achieved implies an increase in 3i Infrastructure’s NAV of c. €110 million or c.10p per share, before any revision to the value of Oiltanking Singapore Limited, and this increases Oystercatcher’s unrealised money multiple to 2.8x and unrealised IRR to 13.5% over the Company’s 14 year investment period.
• BH Macro GBP (BHMG) has announced that “it may sell Sterling shares at a price of 3530 pence per share, reflecting a 3.9% premium to the estimated net asset value per share as at 17 September 2021”. BHMG says that it intends to issue new sterling shares on this basis until 24 September 2021 and that investors wishing to participate should reflect their interest to J.P. Morgan Securities PLC.
• Gulf Investment Fund (GIF) has launched a tender offer for up to 100 per cent. of each Shareholder’s holding of Shares in the Company (details of which were previously set out in the circular dated 25 March 2021). Shareholders on the Register at 5.30 p.m. on 27 September 2021 are invited to either (i) continue their full investment in the Company; or (ii) save for Restricted Shareholders, tender some or all of their Shares held at the Record Date.