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information contained in this announcement is restricted and is not
for publication, release or distribution in the United States of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
to professional investors in Belgium, Denmark, the Republic of
Ireland, Luxembourg, the Netherlands, Norway and Sweden), Canada,
Australia, Japan or the Republic of South Africa.
19 December 2024
Chrysalis Investments Limited
("Chrysalis" or the "Company")
Disposal and Portfolio
Update
Featurespace
Further to the announcement made on
26 September 2024, the Company can confirm that the transaction to
sell its entire holding in Featurespace to Visa has now completed
and all closing conditions have been satisfied.
Chrysalis will shortly receive
initial cash proceeds from the sale of approximately £79 million.
Further proceeds, amounting to approximately £11 million have been
deferred in escrow, as is typical of this type of transaction. The
total consideration paid by Visa for Featurespace remains
confidential.
As noted in the announcement of 26
September 2024, the Company's total investment in Featurespace was
£29.5 million; as such, the proceeds received at completion
represent a money multiple return of 2.7 times, and if the amount
held in escrow is paid in full, this will increase to 3.0
times.
Featurespace will become part of
Visa's Risk and Identity Solutions business, which will enhance the
provision of fraud protection services to Visa's customers and
consumers.
Liquidity and buyback
As of 18 December 2024, the Company
had liquidity of approximately £70 million (which includes the
drawdown of the £70 million loan facility from Barclays Bank plc,
as well as certain post year-end follow-on investments), comprising
a position in Wise of approximately £3 million, with cash and
equivalents making up the balance. Receipt of initial proceeds from
Featurespace will see this rise to approximately £149
million.
The Company has been undertaking a
share buyback - with an initial target of £40 million - funded by
the proceeds from the sale of Graphcore earlier in the year. As of
18 December 2024, approximately 25 million shares had been bought
back into Treasury at a cost of approximately £23 million, implying
£17 million of this initial tranche remains.
With the initial proceeds from
Featurespace now received, and given that sufficient capital is now
in place to fund it, the Company intends to continue its capital
return programme up to £100 million, as soon as reasonably
practicable (at this moment, the Company is currently in "closed
period" for its Annual Report & Accounts and is unable to vary
instructions to its brokers regarding buy-back quantum, beyond the
£40 million currently authorised). An increase in the capital
return to up to £100 million is as set out in the second element of
the Company's Capital Allocation Policy ("CAP"), which formed part
of the continuation vote approved on 15 March 2024.
Nick Williamson and Richard
Watts (Managing Partners of the Investment Adviser)
comment:
"Over the last sixteen years, Featurespace has built a suite
of machine and deep-learning products to combat payments fraud and
other financial crimes. From small beginnings, the company now
protects 500 million consumers and 100,000 businesses globally and
processes over 100 billion transactions per annum. This success is
testament to Featurespace's relentless innovation, ably guided by
Martina King (CEO) and David Excell (Founder).
This exit, at up to 3x invested capital, represents a strong
return for our shareholders, and we wish the whole Featurespace
team well as they start a new leg of their journey as part of
Visa.
Following the receipt of proceeds, we are delighted that the
second element of the CAP is now fully funded, and that the Company
will be able to continue to return capital to shareholders in
advance of what we anticipate to be a successful Klarna IPO in the
not-too-distant future."
-ENDS-
|
For
further information, please contact
Media
Montfort Communications:
Charlotte McMullen / Imogen
Saunders
|
+44
(0) 7921 881 800
chrysalis@montfort.london
|
|
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|
|
Investment
Adviser
Chrysalis Investment Partners LLP:
James Simpson
|
+44
(0) 20 7871 5343
|
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G10
Capital Limited (AIFM):
|
+44
(0) 20 7397 5450
|
|
Maria Baldwin
|
|
|
|
|
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Panmure Liberum:
Chris Clarke / Darren
Vickers
|
+44
(0) 20 3100 2000
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Deutsche Numis:
Nathan Brown / Matt Goss
|
+44
(0) 20 7260 1000
|
|
IQEQ Fund Services (Guernsey) Limited:
Aimee Gontier / Elaine
Smeja
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+44
(0) 1481 231852
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LEI: 213800F9SQ753JQHSW24
A copy of this announcement will be
available on the Company's website at https://www.chrysalisinvestments.co.uk
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 Company's website, nor the content on
any website accessible from hyperlinks on its website for any other
website, is incorporated into, or forms part of, this announcement
nor, unless previously published by means of a recognised
information service, should any such content be relied upon in
reaching a decision as to whether or not to acquire, continue to
hold, or dispose of, securities in the Company.
The Company is an alternative
investment fund ("AIF") for the purposes of the AIFM Directive and
as such is required to have an investment manager who is duly
authorised to undertake the role of an alternative investment fund
manager ("AIFM"). The AIFM appointed is G10 Capital Limited (part
of the IQEQ Group).
