Seymour Pierce makes offer for antfactory holdings

14 January 2002

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Stockbroker and corporate financier Seymour Pierce has offered to acquire the share capital of global strategic investment group antfactory for up to 380 million new Seymour Pierce ordinary shares, to be issued at 13p a share, representing 53% of the enlarged share capital. It will also issue short-term loan notes to a value of up to $72.5m in nominal amount. More than 75% of each class of antfactory preference shareholders have provided confirmations and undertakings to accept the offer. With the addition of the cash from antfactory as a result of the offer, the enlarged group will have pro forma cash balances (net of debt and after estimated expenses) of approximately $43m, which will be used primarily to develop the Groupâ€™s asset management business. Seymour Pierce is also acquiring a portfolio of 15 investments with a book value of $18.1m (as of 30 September 2001), which will be progressively realised over the coming years as suitable opportunities arise.

antfactory was established in 1999 as a global strategic investment group with funds of $190m. Approximately $118m remains as cash balance. antfactoryâ€™s major institutional shareholders, including Allianz Capital Partners, Citicorp Venture Capital, CVC Capital Partners, Tarrant Venture Partners (an investment entity associated with the principals of Texas Pacific Group) and Whitney & Co, will become shareholders in Seymour Pierce. It is intended that Harpal Randhawa, chairman and CEO of antfactory, and James Pitt, a director of Whitney & Co, will be invited to join the board of Seymour Pierce as vice chairman and as a non-executive director respectively.