Inflexion Private Equity has sold its interest in UK cinema group Ster Century to unnamed financial backers, thought to include both debt, mezzanine and equity interests. The sale represents the first exit from Inflexion’s fund 2, which held a first closing at £50m in July last year and shortly after invested £6m in Ster Century.
Inflexion supported the acquisition of Ster Century with a total funding package of £18m, of which £6m was equity it provided and the remainder debt supported by HSBC. Inflexion’s return on its £6m equity investment is around £19m, representing an IRR of 250% in just under 12 months.
Inflexion bought Ster Century when it was a unit of Safmarine & Bennies Holdings’ Kersaf Investments subsidiary and Primedia Inc’s and majority owned Primedia Ltd’s Ster Century Europe join venture.
Inflexion was able to exploit a tax situation within the group meaning that Ster Century pays very little tax for the time being. Also this year, in March Inflexion partially exited its investment in ANT Limited, the consumer electronics business.