Ann: Confirmation of Capital Structure, page-5

I was reading this article, and contemplating its significance re Alexium.

I recall that Colinton's investment in the AMA Car Repair group performed poorly, and am unsure what losses Colintons may have suffered.

But reading this article caused me to think that their other investments will be very profitable for them.

They pick underperforming businesses, add their expertise and funding, then unload the business at a sizable profit.

So re AJX Colintons have:
-pumped another $2m into equity via CR
- they have converted CN to equity. So that represents a vote of confidence in AJX business, because that changes the risk profile of the Col investment. The CN was secured first ranking debt over all of AJX assets (except debtors and stock). So if AJX went broke, Col would at least get the IP etc.
But converting CN to shares they rank alongside all of us. They just have a bigger investment. The CN was real cash they invested previously - now shares.
- Col have provided a Chairman, including his time.
- Col are playing an operational role, with their Exec spending time with AJX mgt.
- Col have now invested their reputational credit with their investment in aJX - so they have that investment in AJX as well.
- sure Col was able to dilute the conversion price of CN down from 3c to 1.5c - and double the number of shares they received --- but it still represented their real cash contribution, and those extra shares are worth nothing unless Col can get AJX to perform!!

So Col have real cause to make AJX perform, and if they benefit then we benefit.

So lets just see some real sales and some real revenue from AJX.

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yesterdays media extract
Livingbridge scrubs out competition in Colinton’s Dimeo auction

Mid-market buyout firm Livingbridge has shoulder-charged its global rivals out of the auction for Colinton Capital Partners’ cleaning services business, Dimeo.
While London-based Livingbridge has not secured exclusivity over the business, it is in bilateral talks with Colinton dealmakers Simon Moore and David Slocomb and working towards an agreed deal, sources said.

It remains to be seen whether Livingbridge makes it to the finish line, with the vendors gunning for $400 million sale price on an enterprise value basis. However, it has shown since opening its doors in Melbourne a few years ago that it is willing to swing hard for the right opportunity. Livingbridge’s local portfolio includes GP business Better Medical, radiology services play Everlight and Waste Services Group.

Colinton boss Simon Moore bought a significant stake of about 60 per cent in privately owned Dimeo for about $50 million as 2018 drew to a close. He has since sought to improve the 40-year-old business’ geographical growth, margins, delivery and operational structures. Dimeo serves a diversified and sticky client base in commercial, government, industrial, retail, healthcare, fitness and lifestyle properties.

Colinton is slated to use the mooted Dimeo exit to bring home a final close for its $200 million Fund II. Moore will also no doubt point to his investment in ASX-listed HR technology business IntelliHR, which was caught in the crosshairs of two PE-backed bidders and nine bids later sold at a 280 per cent premium to last close.