Listed fund manager Dunedin Enterprise Investment Trust has sold its entire investment in Scottish Widows Investment Partnership’s SWIP Private Equity Fund of Funds II for an aggregate cash consideration of €17.37m.
Dunedin said, “This transaction represents the first step in enacting the change of the company’s strategy to focus on funds raised by Dunedin Capital Partners investing in the UK as well as returning cash to shareholders.”
It is proposing to return approximately £14.31m of the proceeds of the sale to shareholders via a tender offer, it added.
The tender offer will be to purchase up to ten per cent of the ordinary shares currently in issue at a price of 475p per share, equivalent to a 10.7 per cent discount to the adjusted net asset value per share as at 30 September 2011, which is the net asset value per share adjusted to value the company’s investment in SWIP PEF at the price at which it has been sold).
Dunedin Enterprise Investment Trust was established in 1974 and listed on the London Stock Exchange in 1987. It principally invests in UK lower mid-market management buy-outs with an enterprise value of £20m to £75m.
Back in November, shareholders of Dunedin Enterprise Investment Trust voted in favour of investing in funds managed by Dunedin or co-investing alongside these funds.
At the time, Shaun Middleton, managing director, Dunedin, “This is great news and demonstrates a clear vote of confidence in Dunedin by the Trust’s shareholders, a continuing commitment to Dunedin as a private equity manager and a recognition of our strengths in the lower-mid market.”
Copyright © 2012 AltAssets