3i Group plc announces it has agreed to sell its stakes in Asian portfolio companies Franklin Offshore, 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 around £20m.
3i has sold its 30 percent 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 around £12m, representing a 21 percent uplift against a value of £10m 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.
3i has also sold its 20 percent shareholding in Futaste to majority shareholder Shandong Futaste. Proceeds to 3i Group plc will be c. £8m. There was minimal uplift to 31 March 2013 valuation as the asset was valued on an imminent sale basis.
