Merian Chrysalis Investment Co. Ltd Portfolio Update (0219Z)
September 15 2020 - 2:58AM
UK Regulatory
TIDMMERI
RNS Number : 0219Z
Merian Chrysalis Investment Co. Ltd
15 September 2020
The information contained in this announcement is restricted and
is not for publication, release or distribution in the United
States of America, any member state of the European Economic Area
(other than the Republic of Ireland), Canada, Australia, Japan or
the Republic of South Africa.
15 September 2020
Merian Chrysalis Investment Company Limited (the "Company" or
"Merian Chrysalis")
Confirmation of Recent Follow-On
- Confirmation of Klarna Holding AB follow-on investment
- Update on cash position
Klarna Holding AB follow-on investment
On 11 September 2020 Merian Chrysalis announced a circa GBP23
million follow-on investment in an unspecified portfolio holding at
a materially higher valuation than that as of the June 2020 net
asset value calculation. Today, the Company confirms that the asset
referred to in that announcement is Klarna Holding AB ("Klarna"),
which conducted a $650 million primary funding round with
additional secondary sell down by some investors.
The new round saw significant interest from a wide range of new
investors and has seen leading technology investor Silver Lake join
the shareholder register. In addition, there was strong support
from the existing shareholder base.
The round values Klarna at $10.65 billion, post money. This
represents a material increase compared with the valuation of $5.5
billion achieved in August 2019, reflecting the business's strong
growth over the last year - volume and revenue in the first half of
2020 were up 44% and 36% respectively, compared with the prior year
- and encouraging prospects in its new markets. As a result, the
business is now the highest-valued private fintech in Europe. The
proceeds of the latest funding round will enable Klarna to invest
in product development, geographic expansion and accelerate growth,
particularly in the US, which is already performing very
strongly.
Cash Position
As a result of the follow-on investment in Klarna, the Company's
gross cash position is approximately GBP31 million and the value of
its stake in Klarna is approximately GBP96 million, assuming the
recent valuation round pricing is applied to the entire position
and calculated using current exchange rates.
Richard Watts, co-portfolio manager comments:
"Klarna has been a driving force in revolutionising the online
shopping and payments market. The company has seen a significant
increase in usage during the coronavirus pandemic and the US in
particular has seen a step change as consumer numbers have grown
more than six-fold year on year. Klarna's expansion continues to
gain pace and we're delighted to have the opportunity to increase
our stake in the business, providing further support as it enters
the next stage of growth."
Nick Williamson, co-portfolio manager adds:
"Klarna's continued strong growth and innovation is cementing
its position as a leading global fintech. In our experience, market
leaders are typically able to command superior economics and in
turn are sought out by investors. As a result, access to this type
of investment, particularly for retail investors, is extremely
difficult, and we are proud that our proposition has allowed our
shareholders to benefit from the material uplift in Klarna's
valuation over the last year."
-ENDS-
For further information, please
contact:
Merian Global Investors:
Amelie Shepherd +44 (0) 20 3817 1000
Liberum:
Gillian Martin / Owen Matthews +44 (0) 20 3100 2000
Maitland Administration (Guernsey)
Limited:
Elaine Smeja +44 (0) 1481 749 364
LEI: 213800F9SQ753JQHSW24
A copy of this announcement will be available on the Company's
website at https://www.merian.com/chrysalis/.
The information contained in this announcement regarding the
Company's investments has been provided by the relevant underlying
portfolio company and has not been independently verified by the
Company. The information contained herein is unaudited.
This announcement is for information purposes only and is not an
offer to invest. All investments are subject to risk. Past
performance is no guarantee of future returns. Prospective
investors are advised to seek expert legal, financial, tax and
other professional advice before making any investment decision.
The value of investments may fluctuate. Results achieved in the
past are no guarantee of future results. Neither the content of the
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END
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