Interim Management Statement
3i Group plc ("3i") is a world leader in private equity and venture capital. This is the first Interim Management Statement issued by 3i in accordance with the new EU Transparency Directive and FSA requirements.
This statement relates to the three month period from 1 April 2007 to 30 June 2007.
Philip Yea, 3i's Chief Executive, said:
"Our outlook for the business is unchanged. 3i continues to perform well and has made a positive start to the year. We have been active in both investment and realisations through the first three months. I am very pleased that we have made further strategic progress with the listing of 3i Quoted Private Equity Limited on the London Stock Exchange at the end of June."
Philip Yea added:
"The intention to return a further £800 million to shareholders, announced in May, further demonstrates our commitment to maximising returns for shareholders."
Investment and realisations
3i invested a total of £591 million in the three months to 30 June 2007, including £181 million in 3i Quoted Private Equity Limited. Investment for the equivalent period last year was £240 million. In addition £80 million (2006: £84 million) was invested on behalf of co-investment funds managed by 3i.
Realisation proceeds received by 3i (excluding co-investment funds) continued to be strong at £605 million for the three months to 30 June 2007 (2006: £433 million).
Returns for the quarter represent a positive start towards achieving our return objectives for the year.
3i Quoted Private Equity Limited ("3i QPE")
3i QPE raised £400 million and listed on the London Stock Exchange on 29 June 2007, including an investment of £181 million by 3i. 3i QPE intends to build a portfolio of influential or controlling stakes in small and mid-cap quoted companies, primarily in the UK and continental Europe. 3i Investments plc, a subsidiary of 3i, acts as investment adviser to the company.
Indian infrastructure market
3i signed a Memorandum of Understanding with India Infrastructure Financing Company Limited ("IIFCL") on 12 April 2007. IIFCL was incorporated in January 2006 as a wholly Government owned company for the purpose of providing financial support to infrastructure projects and facilities in India. Investments arising from this partnership will primarily be in power, ports, logistics, airports and road projects in both early stage and mature infrastructure operations.
Return of capital to shareholders
It will be proposed at the Extraordinary General Meeting today to return to shareholders £807 million, through an 11 for 8 bonus issue of listed B shares. A share consolidation will be undertaken in order to reflect the return of value represented by the issue of the B shares, under which the Existing Ordinary Shares will be consolidated and subdivided such that shareholders will receive 17 Consolidated Ordinary Shares for every 20 Existing Ordinary Shares held.
For further information, please contact:
3i Group plc
Simon Ball, Finance Director - 020 7975 3356
Patrick Dunne, Group Communications Director - 020 7975 3283
Philip Gawith - 020 7379 5151
This statement aims to give an indication of material events and transactions that have taken place during the period from 1 April 2007 to the date of publication of this statement and their impact on the financial position of 3i Group plc. These indications reflect the Board's current view. They are subject to a number of risks and uncertainties and could change. Factors which could cause or contribute to such differences include, but are not limited to, general economic and market conditions and specific factors affecting the financial prospects or performance of individual investments within 3i's portfolio.