EPE CAPITAL PARTNERS LIMITED – Quarterly Update as at 30 Sept 2017

QUARTERLY UPDATE AS AT 30 SEPTEMBER 2017 

Ethos Capital is an investment holding company, registered and incorporated in Mauritius as a public company.  It is listed on the Johannesburg Stock Exchange and offers shareholders long-term capital appreciation by making commitments and investments into Funds or Direct Investments that are managed by Ethos Private Equity (Pty) Limited (“Ethos”), providing the Company with indirect exposure  to a diversified portfolio of unlisted private equity type investments (“Portfolio Companies”). 

Ethos Capital’s underlying net asset value per share increased to R10.61 as at 30 September 2017 (R10.37 at 30 June 2017).  This was largely driven by the net return on Temporary Investments and unlisted investments. 

At 30 September 2017, Ethos Capital had total commitments to Ethos Funds and Direct Investments of R1.3 billion (71% of NAV).  As at 30 September 2017, Ethos Capital had liquid resources of c. R1.6 billion to meet any outstanding commitments and in addition, the Company has a four-year revolving credit facility that, once activated, will provide access to c. R0.6 billion of additional resources for the Company. 

During the quarter ended 30 September 2017, three new acquisitions of underlying Portfolio Companies were either completed or signed, increasing Ethos Capital’s underlying exposure to eleven Portfolio Companies.  The companies span a number of sectors providing a diversified portfolio exposure.

In July 2017, Ethos Mid Market Fund I (“EMMF I”) completed the acquisition of a stake in MTN Zakhele Futhi (a special purpose vehicle established to hold a B-BBEE shareholding in the MTN Group Ltd) for a consideration of R100.0 million.  Ethos Capital’s exposure to this investment, through EMMF I, was R49.2 million.

In October 2017, a consortium of investors, including EMMF I, completed the acquisition of Kevro Holdings Proprietary Limited (“Kevro”).  In addition to Ethos Capital’s participation via the Fund, it also co-invested alongside the Fund through a Direct Investment of R100.0 million, and has a total exposure to Kevro of R215.7 million.

In September 2017, Ethos Capital signed a conditional agreement to make a Direct Investment into Primedia Holdings (Pty) Ltd (“Primedia”).  Ethos Capital’s exposure to this investment will be c. R203.0 million upon completion, which is expected to be in November 2017.

The invested capital balance as at 30 September 2017, adjusted for the Kevro and Primedia transactions, is R774 million, 41% of the 30 September 2017 NAV.  

The financial information, contained in this announcement and on which it is based has not been reviewed and reported on by the Company’s external auditors.