AUS
NZ
UK
CA
USA
IND
_06_19_2026_12_34_15_139937.jpg)
Chrysalis Investments Limited (LON: CHRY) has confirmed that Graphcore, a company in which it held a stake, is being acquired by SoftBank Group Corp (SoftBank). This acquisition is expected to result in cash proceeds of approximately $56.0 million for Chrysalis, with initial consideration amounting to $54.8 million after modest deferred payments typical of such transactions.
Financial Gains and Valuation
Chrysalis anticipates receiving approximately £43.8 million from the transaction, which represents a significant 25% premium to Graphcore's carrying value of £35.1 million as of March 31, 2024. This premium translates to approximately 1.46 pence per share, underscoring the favorable outcome for Chrysalis due to its strategic position in Graphcore's capital structure.
Strategic Investment and Risk Management
The Investment Adviser noted that Graphcore represented one of the riskier investments in Chrysalis's portfolio, albeit one poised to capitalize on the emerging AI market. However, Chrysalis's structured position in Graphcore's capital structure provided effective downside protection, resulting in a notably positive outcome from the acquisition by SoftBank.
Liquidity and Financial Position
As of July 10, 2024, Chrysalis reported total liquidity of approximately £13.8 million, comprising £11.6 million in cash and a £2.2 million position in Wise. The decrease in liquidity from March 2024 primarily reflects additional investments amounting to approximately €10.5 million in wefox, as well as a decline in Wise's share price following its preliminary results for March 2024.
Future Financial Outlook
Following the Graphcore sale and factoring in further expected investments in wefox, Chrysalis anticipates total liquidity to increase to approximately £50 million. This aligns with the company's Capital Allocation Policy (CAP), ensuring adequate cash reserves for future strategic initiatives and investments.
To summarise, Chrysalis Investments' successful exit from Graphcore through its acquisition by SoftBank marks a significant financial milestone, showcasing effective risk management and strategic portfolio positioning. With enhanced liquidity and a strengthened financial position, Chrysalis is well-positioned to pursue future growth opportunities in its investment portfolio, continuing to deliver value to its shareholders amidst evolving market dynamics.
