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F&C realises direct holding Viking Moorings

F&C Private Equity Trust has realised its largest direct holding, Viking Moorings, which together with the proceeds from additional holdings through Inflexion managed funds will yie

F&C Private Equity Trust has realised its largest direct holding, Viking Moorings, which together with the proceeds from additional holdings through Inflexion managed funds will yield net proceeds to the company of GBP12.2m.

This, together with the impact from holdings in Inflexion managed funds, represents an uplift over F&C’s latest carrying value of GBP1.5m. 

Viking Moorings, a provider of oil rig mooring systems in the North Sea, was acquired by Inflexion Private Equity in December 2005 for GBP22m. At the same time F&C Private Equity invested alongside Inflexion with GBP1.06m giving the company a 9.2 per cent share of Viking. Viking was refinanced in September 2007 allowing F&C Private Equity Trust to recover more than its initial investment.

Viking has been sold to HSBC Private Equity for an enterprise value of GBP170m. As part of the transaction Inflexion and F&C Private Equity will rollover a small proportion of their proceeds into the new holding company of Viking and will therefore continue to benefit from the company’s growth. The total consideration represents an investment multiple of 11.4x of which 9x is cash. The IRR of the investment is 106 per cent.

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