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Siparex Croissance: a new management approach designed to enhance yield and liquidity of the share
Sizable Capital Gains on Exits in the First Quarter


This plan is intended to make Siparex Croissance’s management comparable to that of limited-term private equity investment funds listed on the stock market. Its aim is to optimize the situation of the company’s shareholders by greatly enhancing the yield on shares as well as their liquidity; these measures should be instrumental in narrowing the shares’ discount.

The principal changes contained in the plan are outlined below:
- shortening Siparex Croissance’s term to 10 years, which is the typical term of French “FCPR” venture capital funds
- in light of the portfolio’s current degree of maturity, making annual distributions to shareholders of the cash generated by revenues from the portfolio and the proceeds of exits (less amounts invested) through the distribution of dividends and public share buy-back offers followed by a capital reduction
- subdividing this 10-year period into two parts: an initial period during which Siparex Croissance may invest undistributed cash, and a second period during which Siparex Croissance will cease to make new investments (other than follow-on investments) and will liquidate its portfolio
- with the company no longer having durable status, but now being managed like a fund, disposing of the Siparex marque to Siparex Associés, the General Partner of Siparex Croissance, by selling the company SPM Siparex, which is currently owner of the marque.

The neutrality of this arrangement with respect to Management’s remuneration will be ensured by adjusting the bases for calculating Management’s performance bonus (“variable remuneration”) and the preferred dividends distributed to Class B shares.

France’s Financial Markets Authority (AMF) has expressed its opinion that the plan, as submitted, is not of a nature to warrant a prior buy-out offer.

The Shareholders’ Meeting scheduled for 31 May 2005 will be asked to approve this planned change along with the financial statements at and for the year ended 31 December 2004.

As indicated in the press release dated 17 February 2005, in light of the good performance of the previous year and in line with this planned change, the dividend distribution to shareholders will be €1.52 per share, or €1.672 for shares eligible for the loyalty bonus, representing a 69% increase with respect to the previous year.

Management has indicated to the Supervisory Board that consolidated capital gains on disposals made during the first quarter were particularly high. They amounted to €8.27 million, compared with €12.52 million for the full year 2004. Management has stressed, however, that considering the type of activity conducted by the company, the performance during a single quarter may not be extrapolated over the entire year.

Lastly, the Supervisory Board has taken note of the launch by Sigefi, the management company of the “Siparex Group” of a new development capital/LBO fund, Siparex Mid Cap, which is complementary to Siparex Croissance. This “FCPR” venture capital fund, which has a target of €120 million, has already received subscription commitments amounting to half of the target from Siparex Associés the General Partner of Siparex Croissance, as well as from its three largest shareholders.


Publisher Contact Information:

Sigefi Private Equity (Siparex Group)
+ 33 4 7283 2317 (direct)
mc.guette@siparex.com

Company profile of Sigefi Private Equity (Siparex Group)
Past press releases of Sigefi Private Equity (Siparex Group).

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