TruFin PLC on Thursday said it disposed of its 54% equity holding in Vertus Capital Ltd for £3.2 million, after the latter was bought by Enable Partners Holdings Ltd.
London-based financial technology holding company for niche lenders and early payment providers TruFin said the proceeds of the disposal would be used to provide additional working capital for the company and allow for incremental capital allocations to Oxygen Finance Group Ltd and Satago Financial Solutions Ltd.
TruFin noted that Watrium AS, a 23% shareholder in TruFin, has co-invested in Enable alongside Explore Equity II SCSp as part of the transaction, taking a 49% stake in Enable. Watrium is also a minority investor in Explore. As a result of Watrium’s investment in Enable, TruFin’s disposal constitutes a related party transaction under AIM rules.
‘Oxygen, Satago and Playstack have made strong progress in executing their strategies over the last 24 months. Oxygen and Satago are both critical infrastructure software providers whilst Playstack is a highly focused games publisher with an enviable pipeline of games secured. The disposal of Vertus, at an attractive valuation, simplifies and focuses the TruFin business. The sale proceeds further strengthen TruFin’s robust balance sheet as we look forward to continued momentum at Oxygen, Satago and Playstack,’ said TruFin Chief Executive Officer James van den Bergh.
‘It has been a pleasure to work with [Vertus CEO] Matt Marais and his team over the last few years. Through hard work and entrepreneurship they have succeeded in building a strong brand as a niche capital provider to the IFA community, which will act as a springboard for their exciting expansion plans. We wish Matt, Enable and Watrium all the best for the future.’
Vertus CEO Marais commented: ‘We would like to thank James and the TruFin team for their support and the wise counsel they have provided during their time as a strategic partner to Vertus. The acquisition by Enable will provide us with the investment to support the next phase of our exciting growth plans.’
Shares in TruFin were down 3.2% to 61.00 pence each in London on Thursday at midday.
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