Date: 12th February 2008 On behalf of: B.P. Marsh & Partners Plc (“B.P. Marsh” or the “Company”) Embargoed For: 0700hrs B.P. Marsh & Partners Plc Sale of investment in Principal Investment Holdings Ltd B.P. Marsh & Partners (AIM: BPM), a niche venture capital provider to early stage financial services businesses, is pleased to announce today the sale of Principal Investment Holdings Ltd (“Principal”), the specialist investment management company in which it has an equity investment to Sanlam, a South African insurance and financial services group (the “Transaction”). B.P. Marsh’s share of the consideration will be approximately £7.4 million including preferred dividend rights. This deal is expected to complete on 14th March 2008. This consideration compares to a value of £7.371 million attributed to B.P. Marsh’s equity investment in Principal on 31st July 2007. Since December 1999, the Company has invested £2.8 million in Principal. The total estimated sale proceeds therefore equate to an investment multiple of 2.64 times the Company’s equity investment and an investment gain of £4.6 million based upon the sale price before any market performance adjustment, described below. Principal was founded in 1987 and provides predominantly discretionary fund management advice through tailored professional investment management services to private clients, trusts, charities and a range of corporate customers. Principal achieved an audited pre-tax profit of £2.3 million in the year ended 31st December 2006. Unaudited management accounts show a pre-tax profit for the year ended 31st December 2007 of £2.7 million. B.P. Marsh’s consideration will consist of an immediate cash payment on completion, subject to an adjustment for debt and expected transaction costs, of £5,797,225, representing 80% of the total anticipated capital consideration, as well as a preferred dividend entitlement in respect of the year ended 31st December 2007 which is estimated to be £170,650. In addition, the Company may, subject to certain conditions, be entitled to a further capital payment of £1,449,307 (the “Deferred Consideration”), which represents the remaining 20% of its share of the Transaction consideration. The Deferred Consideration will be payable in two years’ time and will be determined by the performance of the FTSE 100 Index on specific quarter dates during that period relative to the value of the FTSE 100 Index on the date the sale price was agreed (6,479 points). It is intended that the Company will invest the proceeds to fund new investments, two of which have already been identified and are currently undergoing due diligence. Commenting on the sale, Brian Marsh OBE, B.P. Marsh’s Chairman, said: “We are delighted to announce our first investment sale since we floated on AIM. We believe the price offers an excellent return for our investors, especially considering the recent turbulence in the financial markets, and the proceeds raised enables the Company to continue to make new investments where we continue to see many excellent opportunities. We have been investors in Principal since 1999 and have thoroughly enjoyed the challenges and opportunities that this has provided. We believe Sanlam to be an excellent new owner for the business and wish them and all the Management and staff at Principal every good fortune for the future.” - ends - For further information: B.P. Marsh & Partners Plc www.bpmarsh.co.uk Brian Marsh OBE +44 (0)20 7730 2626 Nabarro Wells & Co. Limited (Nominated Adviser) David Nabarro/Marc Cramsie +44 (0)20 7710 7400 Redleaf Communications (PR to BP Marsh) Emma Kane/Tom Newman +44 (0)20 7822 0200 -ends- Notes to Editors: About B.P. Marsh & Partners Plc B.P. Marsh’s current portfolio contains ten companies. More detailed descriptions of the portfolio can be found at www.bpmarsh.co.uk. Over the past 18 years, the Company has assembled a management team with considerable experience both in the financial services sector and in managing private equity investments. Many of the directors have worked with each other in previous roles, and all have worked with each other for at least three and a half years. Prior to Brian Marsh’s involvement in the Company, he spent many years in insurance broking and underwriting in Lloyd’s as well as the London and overseas market. He has over 30 years’ experience in building, buying and selling financial services businesses, particularly in the insurance sector. Managing Director, Natasha Dunbar, has over 10 years’ experience in the financial services industry. Having joined the Company in 1994 she was made managing director in March 2002. Natasha works closely with Brian Marsh in defining the strategic development of the Company. Francis de Zulueta is the Company’s Development Director. With a wide-ranging knowledge of the financial services market, he seeks out, researches and evaluates potential new investments for B.P. Marsh. Following a 23-year broking career with Willis Faber and Aon, among others, he took an active interest in the mergers, acquisitions and venture capital business of Marsh McLennan. Jonathan Newman is the Group Director of Finance and has over 10 years’ experience in the financial services industry. Jonathan advises investee companies through several non-executive board appointments and evaluates new investment opportunities. Robert King is a Director and Group Company Secretary. He joined B.P. Marsh in May 2003 having started his career at PricewaterhouseCoopers. Since joining B. P. Marsh he has taken on responsibility for the Group's legal, compliance and secretarial functions and played a key role in the flotation of the Company.
Pages to are hidden for
"Financial Services Company for Sale"Please download to view full document