REG - Kelso Group Holdings - Update on Investment in NCC

Kelso groupAnnouncement

02/08/2024 07:00

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RNS Number : 8990Y  Kelso Group Holdings PLC  02 August 2024

2 August 2024

Kelso Group Holdings Plc ("Kelso" or the "Company")

Update on Investment in NCC

Kelso, the main market listed acquisition vehicle, notes the announcement made
yesterday at 4:30pm by NCC Group plc ("NCC"), regarding the disposal of its
non-core business based in the Netherlands. NCC is Kelso's largest
shareholding, with the Company holding 2.5m shares.

Terms have been agreed for the sale of NCC's subsidiary, Fox Crypto B.V., to
CR Group Nordic AB for a cash consideration of c.£66m. This transaction
represents a 16.5x EBITDA multiple.

This announcement follows a strong set of preliminary final results from NCC
released at 7am yesterday. NCC's net debt position as of 31 May 2024 was
£38.5m. The proceeds from the sale will be used to transform NCC's balance
sheet, achieving a substantial net cash position.

Kelso continues to believe that the underlying valuation of NCC, with its two
discreet businesses in Cybersecurity and Escrow software, is significantly
greater than the current market capitalisation.

 

For further information please contact:

 Kelso Group Holdings Plc                                  +44 (0) 75 4033 3933
 John Goold, Chief Executive Officer

 Mark Kirkland, Chief Financial Officer

 Jamie Brooke, Chief Investment Officer
 Zeus (Broker)                                             +44 (0) 20 3829 5000
 Nick Cowles, Ed Beddows, John Moran (Investment Banking)

 Ben Robertson (Corporate Broking)
 Camarco (Financial PR)                                    +44 (0) 20 3757 4980
 Billy Clegg, Tom Huddart

 

About Kelso - https://kelsoplc.com/

Kelso was established in November 2022 to identify, engage and unlock trapped
value in the UK stock market.  Kelso's strategy is to invest in situations
where it believes there is an anomaly between the intrinsic value and
prospects of a company and its stock market valuation.  Kelso will, in
particular, look for situations where it believes the sum of the parts of a
business is greater than the current value. The Kelso team is led by an
experienced and well-invested Board and management team with a track record of
identifying and creating value in the UK small and mid-cap public markets. The
board of Kelso owns 20.5% of the equity having invested in each of the last
three fundraising rounds.

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