Davenham float aids Dunedin

Private equity house Dunedin Capital is on the verge of securing an £11.2 million cash windfall, as a result of portfolio company Davenham’s imminent £65 million AIM flotation.

Private equity house Dunedin Capital is on the verge of securing an £11.2 million cash windfall, as a result of portfolio company Davenham’s imminent £65 million AIM flotation.

Asset-based lending business Davenham is expected to join AIM on Tuesday 22 November and has now concluded a £44.6 million pre-float fundraising with the aid of broker Panmure Gordon. The refinancing has afforded Dunedin an opportunity to offload around two-thirds of its stake for a net £11.2 million. Based on the 254p AIM placing price, the private equity group’s remaining interest is worth a further £6.5 million.

For Dunedin, the total £17.7 million consideration marks a 40 per cent premium to the investment’s paper valuation as of April. It also represents a four times return on the group’s original stake – Dunedin first backed Davenham, which provides loans of between £10,000 and £3 million to SMEs, when the latter completed a management buyout in 2000.

‘This has been a very successful investment for us and we will remain a supportive shareholder of Davenham following its AIM flotation,’ comments Dunedin’s Brian Scouler.

Leslie Copeland

Leslie Copeland

Leslie was made Editor for Growth Company Investor magazine in 2000, then headed up the launch of Business XL magazine, and then became Editorial Director in 2007 for the online and print publication portfolio...

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