5th Feb 2014 09:26
LONDON (Alliance News) - HgCapital Trust PLC, Wednesday said it will make about GBP5.7 million as its manager gears up to sell its stake in Manx Telecom PLC, the Isle of Man communications company set to float on the London Stock Exchange's Alternative Investment Market.
In a statement, HgCapital Trust PLC, the listed investment trust which participates in all HgCapital's investments, said it will realise GBP13.1 million on completion of the sale, representing a GBP5.7 million uplift over the carrying value reported on November 30.
HgCapital Trust shares were Wednesday quoted at 1,093.60 pence, up 23.60 pence, or 2.2%.
Manx Telecom will float on AIM in an IPO expected to raise GBP156.3 million, with GBP89.2 million raised by the company from new shares and GBP67.2 million by shareholders from existing shares. The placing, which was underwritten by Liberum Capital Ltd, was "significantly oversubscribed", according to Manx.
The shares are being sold at a placing price of 142 pence each, giving Manx Telecom a market capitalisation of GBP160.2 million, with a free float of 98%.
The IPO marks an end to almost four years of private ownership for Manx Telecom, after it was acquired by HgCapital, along with CPS Partners and management in the summer of 2010.
"We are a well-established business with strong ties to the Isle of Man and a reputation for excellent customer service, operating on an island with a resilient, growing and affluent economy," Manx Telecom Chief Executive Officer Mike Dee said.
He added: "The business is well-placed to take advantage of further on-Island growth opportunities due principally to demand for 4G, faster broadband and data hosting services. Expansion will also be driven by growth in off-island services based on Manx Telecom's mobile technology platform."
Admission to AIM is expected on Monday next week.
By Samuel Agini; [email protected]; @samuelagini
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
HgCapital Trust plc