Settlement of Earn-out: Positive Impact on Net Asset Value and
Significant Increase of Liquidity
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ In connection with the restructuring of Private Equity Holding Ltd(PEH) in 2003, PEH retained a profit participation right ('Earn-out')in respect of 12 private equity funds, which had been sold to CSFBStrategic Partners II ('CSFB SP II'). Up to September 30, 2009, PEHhas received total cash distributions of EUR 45.4 million from thisEarn-out.Today, PEH and CSFB SP II entered into an agreement for an earlysettlement of the Earn-out. The agreement stipulates that the 12 fundinterests, which were the basis for the calculation of the Earn-out,shall be retransferred to PEH; thus PEH will enjoy 100% of alldistributions from these funds in the respective fund currencies fromOctober 1, 2009. Given that a large portion of the value in the 12funds is stated in USD whereas the Earn-out was denominated in EUR ata USD/EUR rate, which had been favorable for PEH over the last years,CSFB SP II also agreed to compensate PEH with a cash payment of EUR15.1 Mio for the value of the FX option that had been built into theEarn-out.As at September 30, 2009, the Earn-out had a value of EUR 64.2 Mio onPEH's balance sheet. Based on the settlement agreement with CSFB SPII, the pro forma value of the Earn-out as of November 30, 2009 isEUR 73 Mio, thereof EUR 15.1 million in cash.The early termination of the 2003 earn-out arrangement has twoimportant advantages for PEH. First, PEH and its adviser, AlphaAssociates AG, have now full transparency over the 12 earn-out funds.PEH will hold these participations on its balance sheet again andwill receive 100% of all future distributions. Second, PEH willreceive EUR 15.1 million in cash. PEH does not have any bank debt onits balance sheet and has kept a solid liquidity position throughoutthe financial crisis. The EUR 15.1 million payment means asignificant increase of PEH's liquidity and hence will improve thecompany's flexibility. ***Private Equity Holding AG (SIX: PEHN), managed by Alpha Associates,offers investors the opportunity to invest, within a simple legal andtax optimized structure, in a broadly diversified and professionallymanaged private equity portfolio.For further information, please contact:Claudine Birbaum, Investor Relations, claudine.birbaum(at)peh.ch, phone+41 41 726 79 80or http://www.peh.chhttp://hugin.info/130308/R/1358970/331072.pdf --- End of Message ---Private Equity Holding AGInnere Güterstrasse 4 Zug WKN: 906781; ISIN: CH0006089921; Index: IGSP;Listed: Investment Companies in SIX Swiss Exchange;
Datum: 03.12.2009 - 18:00 Uhr
Sprache: Deutsch
News-ID 9250
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