CPPGroup Plc
("the
Group"; or "the Company")
Divestment of minority holding
in KYND Limited
CPP Group (AIM: CPP), a provider
of real-time, digitally delivered assistance products which reduce
disruptions to everyday life for millions of people, has completed
the disposal of its minority interest in KYND Limited ("KYND") to V
Acquisition Limited, part of the Verisk Analytics, Inc. group
("Verisk"), for cash consideration of £2.6 million (the
"Transaction"). The investment in KYND is non-core to the Group
following the announcement of its revised strategy and Change
Management Programme ("CMP") to transform the Group to an InsurTech
business, led by Blink Parametric ("Blink") and supported by CPP
India and CPP Turkey.
Background
The Group, in 2018, acquired a 20%
shareholding in KYND, a business which provides cyber risk
management solutions, for £1.2 million. The Group's shareholding in
2021 reduced to 13.3%, on a fully diluted basis, when the Group
decided not to participate in a capital raise by KYND.
At 30 June 2023, the fair value of
the Group's balance sheet investment in KYND was £2.0 million. No
profit or loss in respect of KYND was recognised in the Group's
income statement for the year ended 31 December 2022.
Transaction
Rationale
· The
Transaction is consistent with the Group's stated strategy to
transform the Group to an InsurTech business led by Blink and
supported by India and Turkey.
· The
Transaction provides a certainty of outcome at an acceptable
return.
· The
Transaction provides additional cash resources, not previously
forecast, to support the CMP and investment in Blink.
Simon Pyper, Group CEO, commented:
"The agreement we have reached with
Verisk is consistent with our stated strategy and is another
positive step as we simplify the Group and transform to an
InsurTech business."
The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulation (EU)
No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit)
Regulations 2019. Upon the publication of this announcement via the
Regulatory Information Service, this inside information is now
considered to be in the public domain.
Enquiries:
CPPGroup Plc
Tel: +44 (0)7917 795601
Simon Pyper, Chief Executive Officer
David Bowling, Chief Financial
Officer
Liberum Capital Limited
(Nominated Adviser and Sole
Broker)
Tel: +44 (0)20 3100 2000
Richard Lindley
Lauren Kettle
About CPP Group:
CPP Group is a technology-driven
assistance company that creates embedded and ancillary real-time
assistance products and resolution services that reduce disruption
to everyday life for millions of people across the world, at the
time and place they are needed. CPP Group is listed on AIM,
operated by the London Stock Exchange.
For more information on CPP visit
https://corporate.cppgroup.com/