28 JULY 2004
Requisition received from Value Catalyst Fund Limited
The Board of Private Equity Investor plc (the “Company”) announces that it has received a requisition from Value Catalyst Fund Limited (“VCF”) to convene an extraordinary general meeting to consider the removal of Timothy Childs, Keith Young, Barbara Thomas and Andrew de Candole as directors of the Company and to replace them with Colin Kingsnorth, Andrew Pegge, and Rory Macnamara who are all nominees of Laxey Partners Limited (“Laxey Partners”), the investment manager of VCF.
The Board notes that these suggested nominees are intimately connected with Laxey Partners and VCF, which are substantial shareholders in the Company holding 27.27% of the Company’s shares. The Board believes that Laxey Partners and VCF are seeking to gain control of the Company from a minority position without making a general offer to shareholders.
Board
The Company today announces that Peter Dicks, the independent director, has been appointed Chairman. Barbara Thomas, who was executive Chairman, believes it is in the best interests of shareholders to have an independent Chairman at this time. She will continue to serve as a director of the Company. The Board has for some time been considering candidates for the role of independent non-executive director and will update shareholders in due course.
Rectification of the Loan Note Instrument
In recent months, it was discovered that, as a result of a clerical error, the executed version of the Loan Note Instrument which was described in the Company’s prospectus dated 31 January 2000 and in every Annual Report and Accounts published since then, was incorrect. Chamelle Limited, the beneficiary of the Loan Note Instrument, sought to rectify this clerical error through legal proceedings to which the Company consented.
The Company announces that the Court has today indicated that it will grant an order for the rectification of the Loan Note Instrument.
Outlook
The Board notes that private equity investments in venture capital funds typically have three phases: investment, holding and realisation. It is in this last phase when substantial returns are normally achieved. The Company is now only part of the way through its planned life and realisations are already being achieved. Furthermore, following the severe recession in venture capital markets, the Company believes that the venture capital industry is currently at the bottom of its investment cycle and is likely to recover strongly from this point.
The Preliminary Announcement on 21 July 2004 in respect of the results for the year ended 31 March 2004 stated that: “Notwithstanding the recent cooling in general market sentiment, the prospects for the company remain excellent and that given time for the portfolio to mature, its investment objectives will be handsomely achieved”.
Shareholders are recommended to take no action at this time. The Board will be writing to shareholders in due course.
For further information please contact:
- Tim Childs: 020 7930 5600
Private Equity Investor PLC
- Julian Cazalet/Angus Gordon Lennox: 020 7588 2828
Cazenove & Co. Ltd
- Jeremy King: 020 7377 6161
Insinger de Beaufort
- Rupert Young: 020 7404 5959
Brunswick Group LLP
Cazenove & Co. Ltd (“Cazenove”) and Insinger de Beaufort (“Insinger”), which are regulated and authorised by The Financial Services Authority Limited, are acting exclusively for Private Equity Investor PLC and will not be responsible to any other person for providing protections afforded to customers of Cazenove or Insinger or for advising any other person
This information is provided by RNS – the company news service from the London Stock Exchange.
Notes to editors
The Company seeks to achieve substantial capital appreciation by investing in emerging growth companies through specialised US venture capital funds focused on the information technology, biotechnology and healthcare sectors.
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