REG - CPPGroup Plc - Divestment of minority holding in KYND Limited

CPPGroupAnnouncement

15/02/2024 14:45

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RNS Number : 3250D  CPPGroup Plc  15 February 2024

CPPGroup Plc

("the Group"; or "the Company")

Divestment of minority holding in KYND Limited

 

CPP Group (AIM: CPP), a provider of real-time, digitally delivered assistance
products which reduce disruptions to everyday life for millions of people, has
completed the disposal of its minority interest in KYND Limited ("KYND") to V
Acquisition Limited, part of the Verisk Analytics, Inc. group ("Verisk"), for
cash consideration of £2.6 million (the "Transaction"). The investment in
KYND is non-core to the Group following the announcement of its revised
strategy and Change Management Programme ("CMP") to transform the Group to an
InsurTech business, led by Blink Parametric ("Blink") and supported by CPP
India and CPP Turkey.

Background

The Group, in 2018, acquired a 20% shareholding in KYND, a business which
provides cyber risk management solutions, for £1.2 million. The Group's
shareholding in 2021 reduced to 13.3%, on a fully diluted basis, when the
Group decided not to participate in a capital raise by KYND.

At 30 June 2023, the fair value of the Group's balance sheet investment in
KYND was £2.0 million. No profit or loss in respect of KYND was recognised in
the Group's income statement for the year ended 31 December 2022.

 Transaction Rationale

·      The Transaction is consistent with the Group's stated strategy to
transform the Group to an InsurTech business led by Blink and supported by
India and Turkey.

·      The Transaction provides a certainty of outcome at an acceptable
return.

·      The Transaction provides additional cash resources, not
previously forecast, to support the CMP and investment in Blink.

 

Simon Pyper, Group CEO, commented:

"The agreement we have reached with Verisk is consistent with our stated
strategy and is another positive step as we simplify the Group and transform
to an InsurTech business."

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit)
Regulations 2019. Upon the publication of this announcement via the Regulatory
Information Service, this inside information is now considered to be in the
public domain.

 

Enquiries:

CPPGroup Plc
 
Tel: +44 (0)7917 795601

Simon Pyper, Chief Executive Officer

David Bowling, Chief Financial Officer

Liberum Capital Limited

(Nominated Adviser and Sole Broker)             Tel: +44 (0)20
3100 2000

Richard Lindley

Lauren Kettle

 

About CPP Group:

CPP Group is a technology-driven assistance company that creates embedded and
ancillary real-time assistance products and resolution services that reduce
disruption to everyday life for millions of people across the world, at the
time and place they are needed. CPP Group is listed on AIM, operated by
the London Stock Exchange.

For more information on CPP visit https://corporate.cppgroup.com/

 

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