TIDMHGT
RNS Number : 3732A
HgCapital Trust PLC
22 January 2024
Hg, the Manager of HgCapital Trust plc ("HGT"), today announces
that it has agreed a full realisation of its shareholding in Argus
Media, the leading independent provider of intelligence to the
global energy and commodity markets.
The transaction is expected to close in the next month and is
subject to appropriate antitrust/merger controls filings.
HGT, whose shares are listed on the London Stock Exchange, gives
private and institutional investors the opportunity to participate
in all Hg's investments.
This transaction values HGT's investment in Argus Media at
approximately GBP52 million. This would represent an uplift of GBP4
million (7% or 0.8 pence per share) over the pro-forma carrying
value of GBP48 million in the Net Asset Value ("NAV") of HGT at 30
September 2023.
Note that these figures only relate to HgCapital Trust's share
of Hg's overall investment in Argus Media.
Based on the 30 September 2023 reported NAV, the pro-forma NAV
of the Trust is expected to be GBP2.3 billion (or 499 pence per
share). HGT's available liquid resources, which includes the
undrawn bank facility of GBP350 million for future deployment
(including all announced transactions and the interim dividend paid
in October) are estimated to be GBP753 million (33% of the
pro-forma 30 September 2023 NAV).
Argus announces strategic agreement to support next phase of
growth
Company to focus on further diversification to address
opportunities in emerging commodities and the energy transition
London, 22 January 2024 - The Argus Media Group ("Argus" or the
"Company"), the leading independent provider of intelligence to the
global energy and commodity markets , today announces that it has
signed a strategic agreement to support its next phase of growth.
Adrian Binks, chairman and chief executive of Argus, along with
General Atlantic, a leading global growth investor and existing
Argus minority shareholder, will each consolidate their stakes in
Argus, with General Atlantic and Argus itself acquiring shares from
current minority shareholder, Hg.
Following the transaction, Adrian Binks, who has built the
Company since taking management control in 1984, will continue to
lead Argus and as a result of the transaction, he will become the
majority owner of the Company, as envisaged when General Atlantic
invested in 2016. General Atlantic will own a large minority of the
Company, with Argus management also remaining as shareholders. Hg
will fully exit its shareholding in the Company.
Founded in 1970 and headquartered in London, Argus serves over
11,000 customers in more than 160 countries, providing price
assessments, news, analytics, consulting services, data science
tools, and industry conferences to the global energy and
commodities markets. Argus assessments are used as benchmarks
around the world for pricing energy, transportation, and other
commodities. Customers rely on Argus' prices for their most
critical business operations including trading, contract
negotiation, risk management and hedging, valuations, and financial
reporting. The Company has delivered uninterrupted annual revenue
growth for each of the last 40 years.
Adrian Binks, Chairman and Chief Executive of Argus Media,
commented: "We are delighted that General Atlantic remains a
committed partner to Argus in the next phase of our growth. Argus
serves its customers around the world by navigating the challenges
presented by the move to a sustainable future, which involves both
traditional hydrocarbon and energy transition commodities. Our
mission to bring transparency to these markets remains unchanged. I
am pleased that Argus continues to be an independent business with
many employees invested in the Company. I would like to express my
thanks to the Hg team for their support and partnership which has
been instrumental in helping Argus continue to grow."
General Atlantic is a long-term partner to Argus, having
initially bought its shares in 2016. Hg, a leading investor in
European and transatlantic software and services businesses,
invested in the Company in January 2020, acquiring half of General
Atlantic's stake. Given the continued strong performance of the
Company, General Atlantic transitioned the remainder of its stake
into a continuation fund in 2021 and is investing additional
capital from this fund to increase its ownership.
Since General Atlantic's investment in 2016, Argus has more than
doubled in size and has accelerated its organic growth. FY2023
revenue grew 17% year on year, with particularly strong momentum in
energy transition products, which grew 46%.
Gabriel Caillaux, Co-President, Managing Director, and Head of
Climate and EMEA at General Atlantic, commented: "Argus has
delivered highly consistent organic growth since our initial
investment, while deepening its role as a critical provider of
proprietary pricing data to the global energy and commodities
markets. Over our seven-year partnership with the Company, Adrian
and his team have demonstrated the quality of the business and
their ability to deliver uninterrupted growth through any market
backdrop. Looking ahead, Argus continues to capture growth
opportunities created by market changes and the energy transition.
We are excited to continue to work with a great team."
Nic Humphries, Senior Partner at Hg, said: "It's been a pleasure
to work with Adrian and the broader Argus management team as they
continue to build an exceptional global business serving the
strategically important energy and commodities sectors, with a true
long-term vision to support their ongoing evolution. We leave on a
high, both delighted to return more capital back to our clients,
whilst also being proud to have partnered and supported the
business for the last four years. We wish the team and General
Atlantic all the best for a successful future."
Following the transaction, Gabriel Caillaux and Tom Hussey will
continue to represent General Atlantic on the Argus board.
The transaction is expected to close in the next month and is
subject to appropriate antitrust/merger controls filings. Terms of
the transaction were not disclosed. Argus Media and its
shareholders were advised by J.P. Morgan as lead financial advisor.
Morgan Stanley and Evercore acted as financial advisors to General
Atlantic and Hg respectively. Macfarlanes LLP, Freshfields
Bruckhaus Deringer LLP, Skadden, Arps, Slate, Meagher & Flom
(UK) LLP, and White & Case LLP acted as legal counsel to Argus
Media, General Atlantic, Hg, and Adrian Binks.
For further details:
Hg
+44 (0)208 148
Tom Eckersley 5401
HGT
+44 (0)20 8396
Laura Dixon 0930
Brunswick
Azadeh Varzi +44 (0)207 404
Hg@brunswickgroup.com 5959
About HgCapital Trust plc
HgCapital Trust plc, whose shares are listed on the London Stock
Exchange (ticker: HGT.L), gives investors exposure through a liquid
vehicle to a portfolio of high-growth private companies in the
software and services sector. The selection of new investments and
creation of value in these businesses are managed by Hg, an
experienced and well-resourced private equity firm with a long-term
track record of delivering superior risk-adjusted returns for its
investors. For further details, please see
www.hgcapitaltrust.com.
The contents of the Hg, HgCapital Trust. Argus Media and General
Atlantic are not incorporated into, and do not form part of, this
announcement.
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END
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