KEYBRIDGE CAPITAL LIMITED — Net Asset Value 2024

Aug 18, 2024

Monday, 19[th] August 2024

ASX Code: KBC

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ASX MARKET ANNOUNCEMENT

NET ASSET BACKING – MARCH 2024

Keybridge Capital Limited (ASX: KBC) ("Keybridge") gives notice that its unaudited after-tax Net Asset Backing as at 31 March 2024 was 6.28 cents per share.

In addition, as separately announced, Keybridge currently holds an investment at nil that could, alternatively, be carried at an equity accounted value of approximately $7.35 million, which equates to approximately 3.5 cents per Keybridge share. There is presently a dispute with the trustee in relation to this investment which Keybridge is working through with the trustee and further details will be provided in due course.

Net Asset Backing

Net Asset Backing
			Previous
		Current	Month	Year
	%	Month	Month	End
Net Asset Backing for Period Ending:	Change	31 Mar 2024	29 Feb 2024	30 Jun 2023
Pre-Tax Net Asset Backing per share	(3.77%)	$0.0628	$0.0653	$0.0204
Post-Tax Net Asset Backing per share	(3.77%)	$0.0628	$0.0653	$0.0204
Total issued (listed) share capital		207,337,836	207,337,836	207,337,836

Net Assets	Current Month	Current Month	Previous Month
	31 Mar 2024		29 Feb 2024
		% of Net
	$’million	Assets	$’million
Cash and cash equivalent	1.741	13.4%	0.928
Listed Securities(Note 1)	9.232	70.9%	12.171
Managed Funds(Note2)	0.078	0.6%	0.091
Other Investments	0.221	1.7%	0.222
Loan Receivables:
•Private Equity(Note 3)	1.767	13.6%	1.440
•Insurance(Note 4)	6.129	47.1%	5.990
•Property(Note 5)	0.835	6.4%	0.835
•Other	0.629	4.8%	0.160
Other Assets	1.404	10.8%	1.123
Derivatives	(0.006)	0.0%	0.02
Margin loan (net)	1.001	7.7%	0.954
Other Liabilities(Note 6)	(10.011)	(76.9%)	(10.404)
Net Assets	13.020	100%	13.530

This announcement was authorised for release by the Company Secretary.

Keybridge Capital Limited | Registered Office | Company Secretarial Enquiries |

ABN 16 088 267 190 | ASX Code KBC | Web www.keybridge.com.au Suite 614, Level 6, 370 St Kilda Road, Melbourne, Victoria 3004, Australia Telephone +61 3 9686 7000 Email cosec@keybridge.com.au

FOR FURTHER INFORMATION:

John Patton Company Secretary Tel: +61 3 9686 7000 Email: cosec@keybridge.com.au

ABOUT KEYBRIDGE CAPITAL LIMITED (ASX: KBC)

KBC is an investment and financial services group with a diversified portfolio of listed and unlisted investments/loan assets including in private equity (US), life insurance (New Zealand), property and funds management sectors and substantial holdings in Yowie Group Ltd (ASX:YOW) and Benjamin Hornigold Ltd (ASX:BHD), HHY Fund and Molopo Energy Limited.

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NOTES:

• (1) Molopo Energy Limited – Keybridge carries its investment in Molopo at nil and holds a 20% economic interest in the Company. It is recorded as a listed investment, as Molopo was listed at the time the investment was made.

Yowie Group Limited – On 29 December 2023, Keybridge announced a takeover bid for Yowie Group Limited. In the circumstances where Keybridge had a relevant interest of 35.66% in Yowie, two directors on the Yowie board and an active takeover bid, Keybridge considers it appropriate to carry its investment on an equity accounting basis rather than mark to market. The equity accounting adjustment, based on Yowie’s ‘ Half Yearly Report and Accounts ’ as released on the ASX on 27 February 2024, resulted in an increase in value (over the market price of 3.4 cents per Yowie security at 31 March 2024) of $1.373 million. Therefore, the current NTA reflects a value of $3.329 million for Keybridge’s equity accounted investment in Yowie.

On 12 April 2024, Keybridge’s investment in Yowie exceeded 50%, with its takeover bid now due to close on 26 April 2024, following the 14 day automatic extension.

The carrying value of Keybridge’s investments in entities which are considered illiquid, are no longer listed or are unlisted, is less than $1,000,000. Keybridge is confident that it can realise this value over time and considers all other listed investments to be liquid.

• (2) Managed Funds – In its NTA for 31 October 2022, Keybridge Management reflected the trading update announced on 1 November 2022, reducing the carrying value of its equity investment in RNY Property Trust to nil.

• (4) Loan Receivables – Insurance : In September 2014, Keybridge invested NZ$3.8 million (A$3.4 million) (via NZ$0.109 million (10.13%) equity and NZ$3.691m notes) into Foundation Life, to finance Foundation’s acquisition of Tower Limited’s life insurance business in New Zealand in 2014. Interest of 9% pa is payable under the note, which is redeemable by noteholders in 50 years (May 2064) or by Foundation (from time to time).

• (5) Loan Receivables – Property : In September 2014, Keybridge took direct control of loans that were held in a fund (where Keybridge was the remaining sole lender) which invested in first ranking mortgage loans over commercial properties. Keybridge has registered mortgages over strata title lots comprising Conference Facilities at a Hotel located in Manly, Sydney as security for loans, which are owed by private companies (which are in liquidation).

As at 31 December 2023, the loan was carried (based on the Directors’ judgement) at a valuation of A$0.835 million, after having regard to historical valuations conducted on the property. At month end, the loan was carried at A$0.835 million.

• (6) Other Liabilities : Keybridge has advanced A$500,000 in security of potential costs in relation to its litigation against Ben Thynne, Nathan Thynne and Grenville Thynne for the recovery of $30 million in unpaid monies. Keybridge expects to recover these costs on successful prosecution of the matter.

In December 2023, Keybridge recognised a $4.3 million (NPV) restraint of trade liability to Mr Bolton in relation to the two (2) year Standstill Agreement entered with Magellan as part of the MGFO transaction.

• (3) Metgasco Loan – Keybridge refers to its announcement on 23 November 2023. Also, on 11 April 2024, Keybridge advised that Metgasco had repaid the $1.44 million advanced under the Loan Note Agreement plus accrued interest.

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