January 31, 2011 | by New Value AG
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January 31, 2011, New Value AG, listed on the SIX Swiss Exchange (SIX: NEWN) will discontinue financing for its portfolio company FotoDesk Group. This online photo service company did not post expected gains in turnover in the highly competitive market environment of 2009 and 2010, leading to a need for fresh capital. The business will be taken over and continue operations under its management. An earn-out approach defines New Value's participation in the company's future earnings. New Value announced its intent to focus on the cleantech and health fields in early 2010. Streamlining the portfolio also corresponds to this refined focus, as FotoDesk is the only component that does not belong to these sectors.
New Value held CHF 3.0 million in FotoDesk Group, representing a 45% participation. An additional CHF 5.9 million were invested in the form of loans and convertible loans. New Value will write off the total of CHF 8.9 million during the current fiscal year 2010/11 (at 31 March 2011). The Net Asset Value (NAV) per share of New Value is decreased from CHF 23.14 at 31.12.2010 to CHF 20.65.
Peter Letter, Head Investment Management for New Value, states: "FotoDesk Group was not able to reach critical mass fast enough in a market characterised by rapid technological change and consolidation, and the acquisition of netservice.cc completed in mid-2010 did not bring the expected results. The board of directors therefore decided not to continue investing resources from New Value, but rather to invest the capital in the promising cleantech and health segments."
Contact:
New Value AG
T.: +41 43 344 38 38
Bodmerstrasse 9
F.: +41 43 344 38 39
CH-8027 Zurich
Rolf Wägli
T.: +41 43 344 38 38
E.: waegli@newvalue.ch
Peter Letter
T.: +41 43 344 38 18
E.: letter@newvalue.ch
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Conclusion of this article: « New Value streamlines portfolio »
Source: New Value AG, Press release