04/12/09
Candover 2008 Fund - Update on status of standstill agreeement
On 7th October 2009 Candover Investments plc announced that the standstill agreement relating to the suspension of the Candover 2008 Fund (the “Fund”) was to be extended to 4th December 2009 in order to allow discussions to continue with Candover Partners Limited, the manager of the Fund, and the Limited Partner investors with regard to the future of the Fund.
The proposal under discussion would result in the termination of the investment period of the Fund. In addition the proposal includes the following key elements:
- The Fund’s sole investment will remain Expro, the oil and gas services group. Candover Partners Limited led the €2.6bn buyout of Expro in July 2008, investing €195.3 million from the Candover 2005 Fund and €305.7 million from the Candover 2008 Fund.
- Candover 2008 Fund investor commitments will be scaled back pro rata subject to an appropriate follow-on reserve of €100 million, which together with follow-on financing from the Candover 2005 Fund, will allow Expro to continue to take advantage of market opportunities. Candover Investments plc will not contribute to this follow-on reserve.
The effect of this will be to substantially reduce the size of the Fund and release all investors (including Candover Investments plc) from a significant proportion of their undrawn commitments.
It has been agreed with the 2008 Fund Advisory Board that a short extension of the standstill agreement relating to the suspension of the Fund up to 8th January 2010 is required in order to allow these discussions to be concluded.
Candover Investments plc is confident that these discussions are constructive and continue to make progress. A further announcement will be made on or around 8th January 2010.
Ends.
*Candover means Candover Investments plc and / or one or more of its subsidiaries, including Candover Partners Limited as General Partner/Manager of the Candover 1997, 2001, 2005 and 2008 Funds.
