Gavin Wood
22 June 2017 · 2 min read

Altamir – Part-sale of Altran shares

Altamir has sold 50% of its largest holding, Altran, realising an estimated c 13% uplift to its portfolio valuation

Apax Partners and Altamir (LTA) have sold 14.8m shares in Altran Technologies, representing 50% of their combined 16.8% holding prior to the sale. In addition to the 8.4% of Altran’s share capital sold by Apax Partners and Altamir, the founding shareholders of Altran sold part of their shareholding, with a total 19.8m shares being sold, equating to 11.2% of Altran’s share capital. The shares were sold in a private placement to institutional investors at €15.0 per share, a 6.7% discount to the closing price of Altran’s shares on 21 June 2017, generating proceeds of €297m.

Altran was Altamir’s largest holding, accounting for 12.1% of its portfolio fair value at end-December 2016. Altamir’s investment in Altran was valued at €105.9m at end-December 2016 when Altran’s share price stood at €13.88, suggesting that Altrafin Participations (through which Apax Partners and Altamir hold their investment in Altran) had c €160m of debt financing. The Altran sale price of €15.0 per share implies a value for Altamir’s holding of c €120m, net of attributable debt, representing a c 13% uplift. Net of carried interest provisions and working capital, Altamir’s NAV was €790m at end-December 2016 and the implied c €14m valuation uplift would add c 1.8% to this NAV.

Assuming 50% of Altrafin’s debt financing will be repaid, Altamir’s share of the Altran sale proceeds will be c €60m, which will make a significant addition to its financial resources. At end-December 2016, Altamir had €67m net cash and a €39m undrawn credit facility, giving financial resources of €106m versus total outstanding capital commitments of €457m.

Read Edison’s most recent research report on Altamir here.

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