North Atlantic Smaller Companies Investment Trust Plc (LON:NAS) has announced the partial sale of Coventbridge Group Limited which will result in the repayment of the 10% loan note plus interest amounting to circa £5.9m and approximately a further £8.0m from a distribution from Harwood Private Equity IV resulting from the sale. The total return on the equity is circa 2.6x.
The remaining business assets, which will be held in a Newco, are valued very modestly as they are subject to contract renewals. There could, however, be a further good upside should the negotiations be successful. The overall value of the transaction is at a premium to the end January valuation.
