Intermediate Capital Group PLC announces exits from DSV A/S and Elmville Limited

10/03/2005 -- Intermediate Capital Group PLC (ICG) announces successful exits from two investments: DSV A/S (DSV) and Elmville Limited (Elmville). Neither transaction involved a private equity sponsor and both continued ICG’s track record of profitable investments in sponsorless opportunities.

ICG sold its equity position in DSV on the 8th March in a public placing to institutional investors. DSV is listed on the Copenhagen Stock Exchange and is active within the road transportation and logistics sector. ICG arranged and provided DSV with DKK 750m of mezzanine financing when they acquired their main Nordic rival DFDS Dan Transport Group A/S in 2000. Since completion of the acquisition DSV's market capitalisation has more than doubled. Martin Eriksson, an investment executive, of ICG commented ‘The financing of the acquisition of DFDS enabled DSV to acquire a competitor three times larger than DSV and become number one in the Scandinavian market. Other benefits for the company included a swift process to arrange the mezzanine loan and limited dilution of the existing equity’.

Elmville Limited owns approximately £50 million of hotel assets in the UK. During 1997 and 1998, ICG and Corus Hotels Plc (Corus), the joint owners of the company, acquired five hotels and one leisure club which were then managed by Corus until the sale in February to Leverguide Limited, a property holding company. Katharine Belsham, an investment executive at ICG and a director of Elmville, commented ‘The terms of the sale of Elmville represented an excellent return for both partners. The mezzanine loan arranged by ICG enabled Corus through Elmville to increase their portfolio of hotels and expand into new geographic areas whilst ICG as a shareholder of Elmville benefited from Corus’s extensive experience of hotel management and their group systems’.

These two exits highlight ICG’s commitment to providing mezzanine finance to all forms of companies whether public listed companies, private companies with large family or management equity holdings or private equity backed ones.
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