IMAC exits Cream for £13.9m representing 9.1x return
9 May 2012
Ingenious Media Active Capital Ltd is pleased to announce that it has successfully sold its investment in Cream Holdings Limited ('Cream'), a live events company based around the Cream electronic music brand. Cream owns and operates the hugely successful Creamfields UK festival, as well as licensed shows overseas and club nights in the UK and Ibiza. IMAC's shareholding in Cream has been acquired by Live Nation Entertainment Inc. ('Live Nation') (NYSE: LYV).
IMAC will receive £13.93m in cash for the sale of its interest in Cream. IMAC holds its ownership position in Cream through its limited partnership position in Ingenious Ventures Limited Partnership ('IVLP'). The net book value of IMAC's investment in Cream as at 31 December 2011 was approximately £6.23m. The transaction results therefore in a gain (and increase in IMAC's net asset value) of £7.70m over the net book value, equivalent to 5.38 pence per IMAC ordinary share. As at 31 December 2011, IMAC's total net assets per share were 22.69 pence (17.99 pence of investments and 4.79 pence of cash). The sale represents a 9.1x return on its investment for IMAC.
The Board intends in due course to distribute the net proceeds from this divestment to IMAC's shareholders in line with IMAC's current investment policy.
Cream made a profit before taxation of £1.42m in the financial year to 31 January 2012.
Patrick Bradley, CEO of Ingenious Ventures (a trading name of the manager to IMAC), said:
"We are extremely pleased to announce the sale of our holding in Cream to Live Nation, which has produced an excellent return for IMAC. We remain committed to actively managing the remaining portfolio, and will seek exits when circumstances are appropriate for each company."
For further information: www.imaclimited.com
Ingenious Ventures - Patrick McKenna / Patrick Bradley 020 7319 4000
Beaumont Cornish Limited, IMAC's NOMAD - Michael Cornish 020 7628 3396
MHP Communications - Reg Hoare / Barnaby Fry / Simon Hockridge / Giles Robinson 020 3128 8100