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QuotedData’s morning briefing 1 October 2021

QuotedData's Morning briefing

In QuotedData’s morning briefing 1 October 2021:

  • SDCL Energy Efficiency Income (SDCL) has announced that it has acquired the remaining 35% equity interest that it did not already own in Primary Energy, a portfolio of recycled energy and cogeneration projects servicing the steel industry, located in Indiana, USA. The interest was acquired from a consortium led by Fortistar LLC for a cash consideration of approximately $92 million. The acquisition was identified as part of SDCL’s near term pipeline in its recent equity issue. The trust acquired an initial 50% interest in Primary Energy in February 2020 and increased its stake to 65% in December 2020. Following the latest acquisition SDCL is now the 100% owner of Primary Energy.
  • St Peter Port Capital (SPPC) shares have been suspended from trading. This is a consequence of the proposed winding up of the Company, which was detailed a circular to shareholders on 10 September 2021. Because of the wind up, SPPC does not intend to issue audited financial statements for the year ended 31 March 2021 and, as a result of not publishing these by the AIM Rules for Companies deadline of 30 September 2021, trading in the Shares will be suspended from 7.30 a.m. on Friday 1 October 2021. An EGM is scheduled for 11 October 2021, at which it expected that a liquidator will be appointed. It is expected that the SPPC’s listing on AIM will be cancelled with effect from 7.00 a.m. on 12 October 2021, following the EGM.
  • Mobius Investment Trust (MMIT) has appointed Northern Trust Investor Services Limited (NTISL) to be its new trustee and depositary, although this appears to be largely a change of name, and not much else. Previously, MMIT’s depositary was Northern Trust Global Services SE, UK branch (NTGS-UK), this being is the UK branch a bank established in Luxembourg, that was previously permitted to provide trustee and depositary services into the UK by virtue of having extra permissions in the UK. However, post-BREXIT, the FCA, has decreed that UK branches of EU banks are no longer able to provide trustee and depositary services into the UK. Instead, these services have to be provided by a UK-incorporated company. In order to comply with the new rules, Northern Trust has established NTISL to be the new trustee and depositary. NTISL is incorporated in England and Wales, and it is authorised by the FCA to be a trustee and depositary. NTISL will provide the same services as NTGS-UK with the same processes and procedures in place.
  • Gresham House, the specialist alternative asset manager, has announced that it has completed the acquisition of the Venture Capital Trust (VCT) business of Mobeus Equity Partners LLP. This deal was previously announced on 10 September 2021 – Click here to read our coverage of the original announcement.
  • Tritax EuroBox (EBOX/BOXE) has been added today as a constituent of the FTSE 250 Index following the changes in the FTSE UK Index Series announced by FTSE Russell.
  • Picton Property (PCTN) has completed the acquisition of Madleaze Trading Estate, in Gloucester for £13.1m. The property comprises 18 industrial units totalling 304,000 sq ft on a 10.3 acre site. The estate is let to eight occupiers and currently includes two vacant units, which are to be refurbished prior to re-leasing. The total rental income is £0.75m per annum, equating to just £2.74 per sq ft. This is expected to rise to £0.86m once the estate is fully let and has the potential to increase further as rents are reset to current market levels. The purchase price reflects a net initial yield of 6.1% and a low capital value of £44 per sq ft. The acquisition was funded through the group’s revolving credit facility and the proforma LTV will increase to 22% post acquisition (June 2021: 21%).
  • Schroder UK Public Private (SUPP) has made an announcement following the completion of Oxford Nanopore Technologies initial public offering (IPO) at a price of 425p per share (click here to read our original story on this transaction). As part of the IPO, existing shareholders were offered the possibility to sell up to 10% of their shareholding in Oxford Nanopore at the IPO price. SUPP has opted for the divestiture of 10% of its current shareholding. SUPP’s says that it remains highly confident of Oxford Nanopore’s prospects to generate continuous shareholder value, given the large position of Oxford Nanopore in SUPP’s portfolio (24.6% of NAV as at 30 June 2021), but decided to diversify the portfolio through the partial realisation. Net proceeds to SUPP amount to around £11m. SUPP’s remaining stake in Oxford Nanopore, based on the IPO price, amounts to c. £99.2m. This combined with the proceeds of the share sale amount to a 21.4% uplift to the last disclosed fair value of the holding as at 30 June 2021. SUPP’s remaining shares are restricted from resale for a period of 180 days under market standoff and lock-up agreements.
  • ICG-Longbow Senior Secured UK Property Debt Investments (LBOW) has released its interim results for the six months ended 31 July 2021. Key developments during the period include:
    • Commencement of capital return to shareholders
    • capital distribution of 5.5 pence per ordinary share announced post-period end.
    • Dividend maintained at 1.5 pence per share per quarter for the six month period to 31 July 2021.
    • Total loan commitments of £110.6 million as at 31 July 2021, as the portfolio continues to reduce in line with the investment objective.
    • No losses incurred or impairment provisions required on any portfolio investments.
  • CVC Credit Partners European Opportunities (CCPG/CCPE) has released its interim results for the six months ended 30 June 2021. The fund’s NAV total returns of 8.31% (31 December 2020: 1.71%) (Euro)  and 8.70% (31 December 2020: 2.80%) both exceeded the Company’s medium-term average annualised total return target of +8%. The Euro Shares and Sterling Shares produced a dividend yield of 4.58% (31 December 2020: 5.42%) and 4.23% (31 December 2020: 5.16%) respectively.
  • Marwyn Value Investors (MVI) published interim results for the six months ended 30 June 2021. Its ordinary shares provided an NAV total return of 15.9% during the period (and 20.5% since 30 June 2020), while the share price increased 12.6%. The share price discount to NAV remains at 34% at both 30 June 2021 and 31 December 2020. Quarterly dividends of 2.265p per share were paid in February, May and August 2021 with a further quarterly dividend of 2.265p expected to be paid in November 2021. A total dividend of 9.06p is expected to be paid in 2021, which represents a yield of 7.4% (based on share price of 122p as at 28 September 2021).

We also have annual results from Vietnam Holding (one of the most robust performances in its 15 year history); JPEL Private Equity (valuation uplifts on disposal have triggered a $1.7m performance fee for the managers); and JPMorgan Global Growth and Income (another very satisfactory year – an NAV total return 7.7% ahead of benchmark).

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