Brief: Wendel In Talks To Buy IK Partners

Wendel SE

17/10/2023 06:39

Oct 17 (Reuters) - Wendel SE  MWDP.PA :
    * WENDEL LAUNCHES ITS EXPANSION IN THIRD-PARTY PRIVATE ASSET
MANAGEMENT AND ENTERS INTO EXCLUSIVE NEGOTIATIONS WITH IK
PARTNERS
    * EXPECTED TO BE COMPLETED IN FIRST HALF OF 2024
    * TRANSACTION WOULD ENCOMPASS (I) AN INITIAL TRANSACTION AND
(II)
SUBSEQUENT TRANSACTIONS STRUCTURED TO ENSURE ALIGNMENT OF
INTERESTS OF ALL STAKEHOLDERS:
    * ACQUISITION OF A CONTROLLING STAKE IN IK IS EXPECTED TO BE
COMPLETED IN FIRST HALF OF 2024
    * IK MANAGES 11.8 BILLION EUROS OF PRIVATE ASSETS ON BEHALF
OF
THIRD-PARTY INVESTORS AND SINCE INCEPTION
    * ALSO ANNOUNCES TODAY THAT IT INTENDS TO LAUNCH A 100
MILLION
EUROS SHARE BUYBACK PROGRAM
    * 383 MILLION EUROS WOULD BE PAID BY WENDEL IN TWO STAGES
    * BY 2024, IK PARTNERS' ACTIVITIES ARE EXPECTED TO GENERATE
AROUND
150 MILLION EUROS IN MANAGEMENT FEES AND AROUND 60 MILLION EUROS
IN PRE-TAX FEE RELATED EARNINGS (FRE)
    * WENDEL WOULD INVEST 383 MILLION EUROS, OR 12.5 TIMES
ESTIMATED
2024 PRE-TAX FEE RELATED EARNINGS ("FRE"), TO ACQUIRE 51% OF IK
PARTNERS' SHARES AND RIGHTS TO 20% OF CARRIED INTEREST GENERATED
ON ALL FUTURE FUNDS RAISED BY IK PARTNERS
    * BY 2024, IK PARTNERS' ACTIVITIES ARE EXPECTED TO GENERATE
AROUND
150 MILLION EUROS IN MANAGEMENT FEES AND AROUND 60 MILLION EUROS
IN PRE-TAX FEE RELATED EARNINGS (FRE)
    * SHARES REPURCHASED UNDER THIS PROGRAM WILL BE USED TO
COVER
WENDEL'S LONG-TERM INCENTIVE PLANS AND TO FINANCE POTENTIAL
STRATEGIC ACQUISITIONS PAID WITH WENDEL SHARES
    * LAUNCH OF A EUR 100 MILLION SHARE BUYBACK PROGRAM
    * REMAINING 49% OF IK PARTNERS' CAPITAL WOULD BE ACQUIRED BY
WENDEL IN SUBSEQUENT TRANSACTIONS, WHICH WOULD TAKE PLACE
BETWEEN 2029 AND 2032
    * THESE SUBSEQUENT ACQUISITIONS OF IK PARTNERS SHARES BY
WENDEL
WOULD BE PAYABLE IN CASH OR IN WENDEL SHARES, AT WENDEL'S
DISCRETION
    * WENDEL WOULD PARTICIPATE IN FUTURE FUNDRAISING ACTIVITIES
UP TO
A MAXIMUM OF 10% OF CAPITAL RAISED

Source text for Eikon:  ID:nGNE59mhwh 
Further company coverage:  MWDP.PA 

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