RNS Number : 4722M
UIL Limited
11 May 2020
 

11 May 2020

UIL LIMITED

(LEI Number: 213800CTZ7TEIE7YM468)

Portfolio update

On 27 January 2020, the Board of UIL Limited ("UIL" or the "Company") announced that it had entered into an agreement for the sale of its investment in Optal Limited ("Optal") and that the sale would be subject to various conditions, including regulatory approvals. 

 

Optal is a leading global fintech offering digital payment solutions including virtual account numbers (VAN), credit and debit solutions for large scale payments in the travel, insurance and other industries.  A definitive agreement for the sale of Optal and eNett International (a joint venture between Optal and Travelport Worldwide Limited which provides a VAN based travel commerce platform) was signed with WEX, Inc (NYSE:WEX).

 

Wex recently announced it had concluded that the COVID-19 pandemic and conditions arising in connection with it, is having a material adverse effect on the businesses of eNett and Optal.  As a result, WEX had advised eNett and Optal that it is not required to close the transaction pursuant to the terms of the purchase agreement.  eNett, Travelport and Optal subsequently announced that they reject WEX's position and intend to vigorously enforce their contractual rights and to hold WEX to its contractual obligations, including finalising its financing, obtaining the remaining governmental approvals, and closing the transaction.

 

In the event that the transaction did not close, the effect on the value of UIL's Optal investment is estimated to reduce UIL's NAV by 2.7%, based on UIL's last announced NAV of 265.06p as at 5 May 2020.

 

 

Name of contact and telephone number for enquiries:

 

Charles Jillings

ICM Investment Management Limited

Telephone: 01372 271486

 


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