Northern Investors Company PLC.
Miscellaneous: Portfolio update and proposed tender offer
3 DECEMBER 2013
NORTHERN INVESTORS COMPANY PLC
PORTFOLIO UPDATE/PROPOSED TENDER OFFER
Northern Investors Company PLC ("Northern Investors") announces the sale of its investment in Alaric Systems Limited ("Alaric"), which provides payment processing and fraud prevention software, to a subsidiary of NCR Corporation.
Northern Investors has received cash proceeds of £5.06 million for its holding of ordinary shares and loan stock in Alaric. The carrying value of the investment in Alaric in Northern Investors' unaudited half-yearly financial statements for the six months ended 30 September 2013, published on 12 November 2013, was £4.15 million. The uplift in Northern Investors' net assets resulting from the sale is therefore £0.91 million, equivalent to approximately 7.5p per share.
Northern Investors has also received accrued loan stock interest from Alaric totalling £0.34 million, equivalent (after providing for corporation tax) to approximately 2.1p per share, which was not recognised in the financial statements as at 30 September 2013.
Northern Investors may become entitled to receive further sale proceeds of up to £0.91 million over the period to December 2017, which will be recognised in the financial statements as and when received.
It was announced in Northern Investors' half-yearly report for the six months ended 30 September 2013 that the board intended to make a tender offer to shareholders in the early part of 2014. On 25 November 2013 it was further announced that the directors envisaged that the amount to be returned to shareholders through the tender offer would be not less than £7.0 million. As a result of the cash inflow from the sale of the holding in Alaric, the directors now estimate that the amount to be returned to shareholders through the tender offer will be not less than £12.0 million, to which will be added the proceeds of any further realisations which may be completed prior to the tender offer being made. As previously announced, it is expected that a circular giving details of the tender offer will be published in February 2014 and that the ensuing re-purchase and cancellation of shares will be completed by 31 March 2014.
For further information, please contact:
Northern Investors Company PLC
Nigel Guy/Christopher Mellor 0191 244 6000
Neil Winward 020 7710 7600
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Northern Investors Co PLC via Globenewswire