Business
Sale of The Native Antigen Company
Sale of The Native Antigen Company.
About this update from Mercia Asset Management Plc
[{"type":"text","content":"\n \n \n RNS Number : 4559S\n Mercia Asset Management PLC\n 09 July 2020\n \n \n \n \n \n \n \n RNS \n \n \n \n \n 9 July 2020\n \n \n \n \n \n \n \n \n Mercia Asset Management PLC \n \n \n \n \n \n (\"Mercia\" the \"Company\" or the \"Group\")\n \n \n \n \n \n Sale of The Native Antigen Company \n \n \n \n \n \n Mercia Asset Management PLC (AIM:MERC), the proactive, regionally focused specialist asset manager, is pleased to announce the profitable sale of The Native Antigen Company Limited (\"NAC\") to LGC, a global leader in the life sciences tools sector, for a total cash consideration of up to £18.0million.\n \n \n \n \n \n Mercia held a 29.4% fully diluted direct holding in NAC at the date of sale and will receive initial cash proceeds of £4.8million, with up to a further £0.4million receivable upon finalisation of customary closing working capital calculations. \n \n \n \n \n \n Based upon the total anticipated amount receivable of £5.2million, the total realised return above the £2.7million holding value as at 30 September 2019, will be a further £2.5million. Of this, £0.6million will be included as a fair value increase in the Group's results for the year end ended 31 March 2020, which will be announced on 14 July 2020. The remaining balance of £1.9million will be recognised as a realised gain in the Group's interim results for the six months to 30 September 2020. \n \n \n \n \n \n \n The sale is anticipated to generate an 8.4x return on its original direct investment cost and a 65% internal rate of return (\"IRR\").\n \n \n \n \n \n Mercia first invested in NAC in 2011 through its third-party managed funds (which as at 31 March 2020 held an additional combined 20.9% stake) and subsequently, from its own balance sheet as a direct investment in December 2014. \n \n \n \n \n \n In addition to the direct investment returns, the sale will generate a 12.1x return on a blended third-party managed funds investment cost and a 31% funds IRR. Mercia has proactively supported NAC since its first day of trading, including representation from Mercia's Chief Operating Officer Peter Dines, as a non-executive director on the NAC board through to exit.\n \n \n \n \n \n Founded in 2010, as a divestiture from a University of Birmingham spinout company, NAC has become o...