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Investment Policy

The investment objective of Wilmcote Holdings plc is to provide shareholders with attractive total returns achieved through capital appreciation and, when prudent, the payment of a dividend in line with the Company's dividend policy, as defined in the Admission Document.

The Directors believe that opportunities exist to create significant value for the shareholders through properly executed, acquisition-led growth strategies, in the downstream and specialty chemicals sector.

The Company will look to achieve its investment objective by taking an active approach to investments made within the following parameters:

  • Geographic focus: The Company may invest globally, including emerging markets, however its principal focus will be on the UK, Europe and North America.
  • Sector focus: The Company intends to focus on the downstream and specialty chemicals sector. The Directors believe that opportunities exist to create value for shareholders through a properly executed, acquisition-led strategy in this sector.
  • Target companies: The Company will target companies with either a well-established presence in their specific segments or companies which are in a position to become leaders in their specific segments, and which fit into the stated geographic and asset criteria guidelines.
  • Types of investment and control of investments: It is anticipated that the Company will acquire controlling stakes in one or more businesses or companies (quoted or private) on a long term basis. The investments made by the Company may take a variety of legal forms; for example, it may acquire complete control or a majority stake of a business, or form a joint venture or partnership.
  • Investment size: The Directors intend that initial funds raised will be used for the purposes of working capital and to undertake due diligence on potential target acquisitions. It is envisaged that the Company’s first acquisition will be of a controlling stake in a business with an enterprise value in the region of £500 million to £2 billion.
  • Nature of returns: It is anticipated that returns to shareholders will be delivered primarily through an appreciation in the Company's share price.

The Company will need to raise additional funds for the Platform Acquisition in the form of equity and/or debt. Depending on the composition of Wilmcote’s share register, it is possible that any equity fundraising for those purposes will, subject to the necessary shareholder approval, be carried out on a non-pre-emptive basis to allow for the diversification of the Company’s shareholder register and to obtain sufficient equity funding.