3i exits two Asian investments realising proceeds of £20m

29 May 2013

3i Group plc (“3i”) announces it has agreed to sell its stakes in Asian portfolio companies Franklin Offshore (“Franklin”), a leading provider of integrated mooring and rigging services to the offshore oil and gas industry, and Futaste, China’s largest - and the world’s second largest - producer of xylitol. Total proceeds to 3i Group from the two transactions will be c. £20 million. 

Franklin Offshore
3i has sold its 30% stake in Franklin to the company’s management team, led by founder Peter Lew and Angie Tang. Proceeds to 3i Group plc from the transaction will be c. £12 million, representing a 21% uplift against a value of £10 million at 31 March 2013.

Since its investment in 2007, 3i has supported the expansion of the company’s international footprint and operating fleet. 3i helped the management team establish robust internal reporting systems and controls to match the increasing complexity of the business. 

Futaste
3i has also sold its 20% shareholding in Futaste to majority shareholder Shandong Futaste. Proceeds to 3i Group plc will be c. £8 million. There was minimal uplift to 31 March 2013 valuation as the asset was valued on an imminent sale basis. 

3i invested in Futaste in 2007.  During 3i’s investment period, 3i has worked closely with management to streamline manufacturing and operations and has facilitated introductions with a number of overseas companies for potential partnerships in production, technology and product sales.  The company has successfully built a strategic partnership with its long-term customers such as Wrigley and Kraft, mainly for chewing gum.  

John Thomson, 3i Partner, commented:  “We are pleased to have supported both Franklin and Futaste over the past six years in developing and expanding their businesses.  Both companies are now well-positioned to continue on their growth trajectories.”    
 

For further information, contact:

3i Group plc
Kathryn van der Kroft   
Tel: +44 20 7975 3021
Email: kathryn.vanderkroft@3i.com

Notes to editors:

About 3i Group

3i is a leading international investor focused on mid-market private equity, infrastructure and debt management across Europe, Asia and the Americas. For further information, please visit: www.3i.com.

Regulatory information

Franklin and Futaste involved recommendations of 3i Investments plc, advised by 3i Singapore and 3i China respectively.