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Undervalued, cash rich investment

Undervalued, cash rich investment
February 18, 2016
Undervalued, cash rich investment

In my last update I noted that the company was in the process of raising £50m of new equity at 220p a share through the issue of 22.7m new shares, representing 40.1 per cent of its existing share capital (‘Cashing in on a top performer’, 23 November 2015). The capital raise completed a few weeks later and the net proceeds of £48.4m will be used to invest in at least five new investments being targeted by Marwyn Value Investors LP, an open-ended Master Fund domiciled in the Cayman Islands, which was launched in early 2006 with backing from more than 60 leading institutions and alternative funds including Marwyn Value Investors.

Marwyn Value Investors LP specialises in the acquisition of growth businesses by taking significant stakes in quoted portfolio companies. To date, it has so far invested a total of £300m in 15 companies and generated net returns of 233 per cent for Marywn Value Investors' shareholders since inception in February 2006, making it the second-best performing listed fund in private equity and UK small caps.

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