Chrysalis Investments has settled a potential claim made against former holding Revolution Beauty.
In a stock exchange announcement this morning (2 January), the two parties said they had reached a confidential settlement without any admission of liability. Chrysalis had previously alleged Revolution had provided misleading information during its period as a shareholder.
Last February, Chrysalis outlined ‘potential claims’ against Revolution Beauty under the UK financial services & markets act.
See also: Chrysalis preps for £100m share buyback with new loan
Chrysalis, which invests in later-stage private equity firms, bought £45m worth of Revolution shares in July 2021.
The investment trust took heavy losses on its stake, selling its position for £5.7m in late 2022.
The investment trust’s claim centred around information provided by Revolution during Chrysalis’s time as a shareholder, which it said contained ‘misstatements and material omissions’.
Revolution strongly contested those claims.
The Revolution board said it had agreed to pay Chrysalis a ‘non-material sum’, believed to be less than 1% of Chrysalis’s £613m market cap.
According to the AIC, Chrysalis shares currently trade at a -23.6% discount to NAV.