JZ Capital updates shareholders on potential outcome of TWH disposal

7th Sep 2018 10:31

(Sharecast News) - JZ Capital Partners updated the market on the proposed disposal of its ownership interest in TWH Water Treatment Industries on Friday, reiterating that it expected to realise $32m in initial gross proceeds from the sale, as well as potentially up to $5m of additional gross proceeds from an earn-out based on certain revenue targets of TWH.The London-listed specialist fund said that, including gross proceeds from a dividend recapitalisation in November 2016, the transaction was expected to represent a gross multiple of invested capital of approximately 3.1x, and a gross internal rate of return of around 25%, in each case taking into account the receipt of full post-closing adjustments and earn-out proceeds.Additionally, it claimed the sale of TWH represented an uplift to JZCP's net asset value as at 31 July of approximately 2.7%, again taking into account the receipt of full post-closing adjustments and earn-out proceeds."We are delighted to realise our investment in TWH," said JZ Capital Partners founder and investment adviser David Zalaznick."This further demonstrates our commitment to building liquidity in order to make new investments, pay down debt and buy back stock."We wish the TWH management team every success in the future."Completion of the transaction remained subject to a number of conditions which the board said were customary for US-style mergers, as well as obtaining shareholder approval at an extraordinary general meeting to be held on 25 September.