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TGE exit nets 20-times return

By on May 28 2008

Investors in shipbuilding support business TGE Marine have generated a return of more than 20 times their investment after the company’s initial public offering (IPO) on AIM. London-based private equity firm Caledonia Investments and Swiss co-investor Capital Dynamics retain a minority of their holdings in TGE following the £67 million IPO.

Capital Dynamics first invested in TGE in 2006 when the business was bought out by its management from energy, water and waste services group Suez. The Swiss firm introduced Caledonia Investments to TGE as a lead investor, with Caledonia taking a 49.9 per cent stake in the firm, Capital Dynamics holding 10.1 per cent, and TGE’s management retaining the remainder.

Currently, about 30 per cent of the two investment firms’ original holding remains invested in TGE, which specialises in the design and construction of gas-carrying ships.

David Smith, managing partner of Capital Dynamics’ European co-investment team, says that the sector in which TGE operates has ‘attractive fundamentals and growth prospects’.

TGE Marine’s market capitalisation is £154 million at its current share price of £126.50.

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