Cap Z buys out 3i's stake in Jelf; Jelf to raise £19m with share placing
US private equity firm Cap Z has bought out rival 3i to take a 25% stake in Jelf.
It comes as Jelf announced plans to raise £19m through a share placement, of which Cap Z is taking up the lion's share.
The deal will make the New York business a minority shareholder, and it's voting rights are understood to below the 30% and in line with regulatory rules.
Last week the West Country broker also revealed it had cleared out its short-term debts with a £24m five-year bank loan.
A Jelf statement said: “The Board is pleased to announce that the Company proposes to raise up to £19 million, before expenses, by way of the Placing undertaken by Cenkos Securities.
“The Placing consists of a conditional placing by the issue of 27,713,939 Placing Shares to institutional and other investors, including Cap Z Partners III L.P. ("CapZ") and by the issue of 25,063,838 new Non-Voting Convertible Shares to CapZ. In addition to subscribing for the Placing Shares and the 25,063,838 new Non-Voting Convertible Shares Cap Z has entered into an agreement to acquire the entire shareholding of 3i Group Plc.
“Following its acquisition of Placing Shares and the shareholding of 3i Group Plc, Cap Z will hold a minimum of 25.01 per cent. but less than 30 per cent. of the Company's Enlarged Ordinary Share Capital. A key feature of the fundraising is the investment by Cap Z and other institutional investors and their endorsement of the Company's strategy.”
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