Business
Exit of Investment in Royalty Partner
Exit of Investment in Royalty Partner.
About this update from Duke Capital Limited
[{"type":"text","content":"\n \n \n \n RNS Number : 4376J\n Duke Royalty Limited\n 22 December 2020\n \n \n \n \n Duke Royalty Limited\n \n \n (\"Duke Royalty\", \"Duke\" or the \"Company\")\n \n \n Duke Royalty Limited Successful Exit of Investment in Royalty Partner\n \n \n \n \n \n Duke Royalty Limited (AIM: DUKE), a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad, is pleased to announce the successful exit of its investment in royalty partner Welltel (Ireland) Limited (\"Welltel\"), the Dublin-based telecoms, IT and network specialist.\n \n \n \n Highlights:\n \n \n \n · \n Duke received net cash of £15.4 million at closing, after exit fees, delivering an IRR on the Welltel investment of 27%\n \n \n · \n Welltel represented the largest investment in Duke's portfolio with a last-audited fair value of £13.2 million \n \n \n · \n Following its initial investment in June 2017, Duke made five subsequent follow-on investments, four of which were to fund M&A transactions\n \n \n \n \n \n · \n Due to the minimally dilutive features of Duke's offering, Welltel's shareholders have retained majority ownership and control throughout Duke's period of investment, allowing significant value creation for their shareholders \n \n \n \n \n \n · \n The transaction represents Duke Royalty's second exit after the recent realisation of Xtremepush in September 2020, further validating the Duke funding model \n \n \n \n \n \n · \n Proceeds from this exit will leave Duke in a positive net cash position, thereby providing significant liquidity of over £30 million for new deployments with several new and follow-on investment opportunities currently at a late stage of due diligence \n \n \n \n \n \n Neil Johnson, CEO of Duke Royalty, said: \n \n \n \n \n \n \"Duke's flexible, long term capital has been key to facilitating Welltel's ambitious strategy during the past three years, and we're proud to have supported them during a period of significant growth. Our role in financing five separate M&A transactions since 2017 demonstrates the close working relationship that we have with John Quinn, Ross Murray and the Welltel team and we wish them all the best. Exits are very much part of the Duke business model and this transaction exemplifies ...