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Sale of RoadChef March 2007
   

Nikko Sells RoadChef for £417m

Nikko Principal Investments Limited ("NPIL"), the principal finance arm of Nikko Cordial Corporation, and Vision Capital, today announce that they have sold the motorway services group to Delek International, an Israeli property company, for an implied enterprise value of £417m.

RoadChef was acquired by Nikko in May 1998 and was Nikko‘s first principal finance investment in the UK.  Later that year Nikko led the additional acquisitions of Blue Boar and Take A Break and in December 1998, Nikko undertook one of the UK’s first whole business securitisations, supported by the RoadChef motorway service area estate.

Since 1998, Nikko has driven the growth and development of the RoadChef business with significant additional capital expenditure into the estate; the expansion of the workforce by over 20%; and the development and opening of three further sites, the most recent of which was the opening of Norton Canes on the M6 Toll road in 2004.  Additional investment has also been made available for the development of new facilities and refurbishments to improve service standards across the portfolio.

Vision Capital Partners IV LP, managed by Vision Capital Limited, has been a minority investor in the RoadChef Group since 2004.

RoadChef is the UK’s third largest motorway service group, operating 20 service stations across the UK and catering for over 65 million customer visits per year.  In 2006 it reported sales of £132.2m, excluding fuel.  Operating from its head office at Norton Canes, the company is run by Chief Executive, Martin Grant, and employs over 2,000 staff.  Services include Costa Coffee, Premier Travel Inn and Wimpy.  RoadChef operates Europe’s largest motorway service station at Clacket Lane on the M25.

Brian Berry, Chief Executive of NPIL commented:

“RoadChef has been an important part of our investment portfolio.  We have supported management in the growth and development of the business and there is no doubt that RoadChef today is a stronger, higher quality and better invested business than it was when we acquired it.  We are pleased with the price we have received for our investment and are confident that Delek will be good owners of the business going forward.  We wish everyone at RoadChef every success for the future”.

Hawkpoint were advisers to the principal shareholders and Allen & Overy were legal advisers.

Vision Capital is a limited liability partnership | Registered in England number: OC336240 | Authorised and regulated by the Financial Conduct Authority