Better Capital has announced that BECAP12 Fund LP has exchanged contracts on the disposal of its interests in iNTERTAIN Limited to Stonegate Pub Company Limited at an enterprise value of £39.5m.
Formal completion is unconditional and is anticipated to happen later this week.
iNTERTAIN owns and operates a national chain of bars trading principally under the Walkabout brand.
The 2012 Fund invested in the business in November 2014, and has successfully restructured and invested in the business, returning it to a profitable and cash generative group.
Stonegate is one of the UK’s largest managed pub companies, with 662 sites nationwide.
The sale of iNTERTAIN is expected to realise net proceeds to the 2012 Fund of £33.7 million at completion, with the remaining proceeds deferred pending the resolution of certain legacy matters. Overall estimated net proceeds from the transaction will be a little below the valuation published in the 2016 Interim Report of £38.0 million. The 2012 Fund GP Company has informed the Board that it anticipates returning the bulk of the immediate cash proceeds to the 2012 Cell.
The board intends to distribute £34.0m from the 2012 Cell to the 2012 shareholders as soon as practicable. This distribution will amount to 9.8 pence per share at the current level of issued share capital, or 10.7 pence per share following the share buy-back and cancellation as proposed in the circular issued by the company on 25 November 2016 if this is approved.
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