Cayzer family make killing on float
One of the UK's wealthiest financial dynasties has reaped hefty rewards after a German shipping company in which they hold a majority stake, TGE, floated yesterday to achieve a market capitalisation six times its former value. nearly £160m (€103m).
The Cayzer family took 50% control of TGE two years ago for just £12m, a sixth of what the company is worth now. Bonn-based TGE raised proceeds of £21.3m through the float and achieved a valuation of nearly £160m.
The family bought the stake in TGE through its quoted vehicle, Caledonian Investments, which is headed by nephew of the late Lord Cayzer, Peter Buckley. The 49.5% holding was purchased through a management buyout from French utility Suez, who retained a large stake.
The float is also a coup for London's Alternative Investment Market, as the second largest so far this year. The junior market has suffered from a lack of flotations due to market volatility.
The initial public offering was run by City broker Kaupthing Singer & Friedlander. Shares priced at £130 and soared on debut to £134.50. Proceeds went towards repaying debt to parent company Caledonia.
In September the Cayzer family, acting through their trust, took a 15% stake in Church House Private Bankers, a regional UK private bank for an undisclosed sum.
Caledonia has built up strategic holdings in a range of financial services companies such as Close Brothers, Rathbone Brothers, British Empire Securities, Polar Capital, and Eddington Capital.
The Cayzer family and Peter Buckley fell four places in the Sunday Times Rich List this year from 116th to 120th. However their fortune has grown from £630m to £690m, and the family stake in Caledonia is worth £539m.
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