3i Group PLC IIIP

DJ Financial News: 3i Sells Portfolio Company

 
  By Paul Hodkinson 
  Of FINANCIAL NEWS 
 

The 3i Group (III.LN) has sold its third portfolio company in the space of a week ahead of the firm's hotly anticipated annual general meeting on Friday.

The U.K.-listed company has sold European rubber component manufacturer Novotema to Axa Private Equity, it was announced today, just days after it announced the sale of a 49% stake in Finnish outdoor clothing brand Halti Oy to Ingman Group.

Both deal values were undisclosed. Novotema has annual revenues of EUR28 million and Halti Oy reported net sales also of EUR28 million in 2010.

One week ago, the firm announced the sale of some of its remaining shares in engineering technology company Norma in a deal valued at more than EUR44 million. The firm retains a 28.3% stake.

3i has been more active on sales than with deals in recent months. The firm also sold the heavy duty emissions control business of technology company Hilite to German power company Cummins last month for an undisclosed value.

Its last buyout - not including portfolio company bolt-on acquisitions - was in February when it purchased a majority stake in German cosmetic packaging company Geka.

The realisations come ahead of 3i's annual general meeting on Friday June 29, at which the company's new chief executive Simon Borrows is expect to announce the firm's new strategy as it battles to improve its share price, which has slumped from 219 pence on March 16 to 181 pence at midday. In May 2007, it stood at 767 pence.

Borrows plans to cut staff and reduce its overseas office network, which should ensure investors drop any opposition to the strategic review, according to media reports.

In the firm's annual results on May 17, Borrows said his priorities would be to determine the investment strategy, improve the firm's asset management capabilities, ensure an appropriate level of operating expenses, and maintain a prudent balance sheet strategy and appropriate distribution policy.

Web site: www.efinancialnews.com

(END) Dow Jones Newswires

June 26, 2012 09:01 ET (13:01 GMT)

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