Business
Increased Investment in Summa
Increased Investment in Summa.
About this update from B.p. Marsh & Partners Plc
[{"type":"text","content":"\n B.P. Marsh & Partners PLC\n04 February 2008\n\n\nDate: 4th February 2008\n\nOn behalf of: B.P. Marsh & Partners Plc ('B. P. Marsh' or the 'Company')\n\n\nB.P. Marsh & Partners Plc\n\n\nB.P. Marsh and a private Spanish investor agree to invest €8 million of new\ncapital in Summa for acquisitions\n\n\nB.P. Marsh & Partners Plc (AIM: BPM), a niche venture capital provider to early\nstage financial services businesses, announces that it has agreed to invest a\nfurther €4m in Summa Insurance Brokerage, S.L. ('Summa'), a Madrid based\nconsolidator of regional brokerages in Spain, alongside €4m from a private\nSpanish investor. In addition B.P. Marsh will be converting €1m of loans\ncurrently outstanding. As a result of this new investment B.P. Marsh will\nincrease their stake from 35% to 48.625%, the new Spanish investor will acquire\n28.625% with Summa's management reducing from 65% to 22.75%.\n\n\nThe €8m of new capital will be invested in three tranches of €2.67m, expected to\nbe made over a three year period to facilitate the next stage of Summa's\nexpansion plans across Spain. B.P. Marsh's contribution will be €1.32m per\ntranche, with the first payment having been made today. As a result the\nCompany's total commitment will be €6.5m in equity and €1m in loans. B.P. Marsh\nwill own 48.625% of Summa immediately, notwithstanding that it will be investing\nits new equity over a three year period.\n\n\nB.P. Marsh initially invested in Summa in January 2005, agreeing to provide\n€1.5m in equity and €1.5m in loans for a 35% shareholding. In January 2007 the\nCompany agreed to extend the loan facility to €2m. The valuation of the\nCompany's equity shareholding in Summa as at 31 July 2007 was €1.8m, with the\nloans being valued at €2m.\n\n\nSince B.P. Marsh's initial investment, Summa have acquired nine brokers, six of\nwhich are directly owned through Summa, with three being acquired by\nsubsidiaries. They are 'Aldave' and 'Erpa' in Navarra, 'JAC' and 'Aranguren' in\nExtremadura, 'Asgal' and 'Sergal' creating the largest independent broker in\nGalicia, 'Falco' in Comunidad Valenciana, 'Citibroker' in Madrid and 'Castillo'\nin Andalusia. Summa will seek to continue to replicate its success in other\nregions across Spain and to develop the acquired portfolios with further\nacquisitions.\n\n\n...