LONDON: Eight Capital Partners has completed the acquisition of a €2 million receivable as outlined in its announcement of 1 June 2019 Notice of AGM.
Finance Partners Group (FPG) is an Italian financial services company that, among other things, takes minority stakes in private companies seeking future listings on public markets. Its main holding is The Avantgarde Group (TAG) a growing fintech company. In September 2018 the Company invested €111,100 in an 8% bond in FPG.
FPG owns a minority interest in TAG and We Arena (“WE”), a digital media gaming company. TAG has been valued by an international firm of accountants at €75 million. Management of FPG have valued We Arena at €5 million. TAG is in the process of obtaining a stock market listing in a prominent European market.
WE is in pre-IPO growth phase and is expected to seek a listing in a comparably prestigious jurisdiction and exchange in 2020. The proposed strategy is for FPG to list these two investee companies, liquidate or redeem the shares and return profits to its shareholders, including Eight Capital Partners, then repeat with other companies.
IWEP Ltd owns a receivable of €4 million from FPG resulting from a sale of TAG shares to FPG. Eight Capital Partners has acquired half of the receivable asset from IWEP. The receivable has a face value of €2 million. The price paid is €1.9 million.
The Company has an option to acquire the remainder of the receivable from IWEP at the same price in the next six months. Eight Capital, in discussion with FPG, intends to convert this receivable into an equity holding in FPG and gain exposure to the potential upside from FPG’s investee company transactions.