QuotedData’s morning briefing 2 November 2020

Gresham House Energy Storage GRID

In QuotedData’s morning briefing 2 November 2020 –

  • Downing Strategic Micro-Cap (DSM) reported interim results for the six months ended 31 August 2020. The NAV increased by 22.5% from the March 2020 low-point, but was down 5.5% over the period, on a per-share basis. Chairman, Hugh Aldous, noted the following: “I said in May that we would continue to consult with the major shareholders, use buybacks when the time was right, whilst trying to avoid shrinking the company and have a plan for when we have calmer times. I shall be listening to shareholders on that. If, for now, we can get improving performance from our investee companies, recognition that they are undervalued and worth holding, keep continued interest in our shares and contain the discount, then we will be looking after shareholders. Whilst it is not in anyone’s interests to sell good investments at a wide undervalue, just to create a redemption pool, we do have to do our best in maintaining fair values for shareholders.”
  • Gresham House Energy Storage (GRID), completed its investment in the 50MW battery project located near Thurcroft, to the east of Rotherham. Thurcroft is GRID’s largest project to date and was acquired for a total enterprise value of £32.5m (plus up to £0.75m of deferred contingent consideration). GRID is the UK’s largest operational utility-scale battery storage fund.
  • Hg, a major European software investor and the manager of HgCapital Trust (HGT), announced the sale of STP, a leading DACH-based provider of legal tech solutions, to Bregal Unternehmerkapital, part of a multi-generational family-owned business that specialises in majority and minority holdings in the DACH region. The transaction values HGT’s investment in STP at approximately £15.1m, which would represent an uplift of £5.6m (60% or 1.4 pence per share) over the carrying value of £9.5m in HGT’s NAV at 31 August 2020.
  • Private equity sector fund, Pantheon International (PIN), agreed on an amendment and extension to its £300m multi-currency revolving credit facility agreement that expires in June 2022. PIN notes that the terms of the amended facility agreement are materially the same as those of the existing facility; the amended facility comprises a £225m tranche that expires in May 2024 and a £75m tranche that expires in June 2022. In addition, the amended agreement allows the company flexibility to increase its committed facilities to £350m through additional facilities.
  • Seneca Global Income & Growth (SIGT) has renewed its £10m revolving credit facility with The Royal Bank of Scotland International for a further two years. The facility bears interest at 1.05% over LIBOR.
  • Life-sciences investor, Syncona (SYNC), announced that Ellen Strahlman has retired as a non-executive director with effect from 2 November 2020. Ellen was a director of SYNC since its inception in 2013.
  • Triple Point Social Housing REIT has completed the acquisition of a portfolio of five properties (74 individual units) and has commenced the process of buying a further six properties (59 units). The aggregate cost of all these properties was approximately £28.9m. The properties are in the the North West (53 units), Yorkshire (22 units), the South West (18 units), West Midlands (16 units), the East of England (14 units) and East Midlands (10 units). The properties come with long leases and are with specialist charities or housing associations regulated by the Regulator of Social Housing, including Blue Square Residential, Inclusion Housing, Independent Housing and Pivotal.
  • Hammerson has completed its sale of VIA Outlets for €307m.
  • RDI REIT has completed on the sale of its UK retail parks for £156.9m.

We also have annual results from International Biotechnology Trust (IBT) and Scottish Oriental Smaller Companies, as well as news of a large catalogue deal from Hipgnosis Songs.

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