9th May 2014 10:55
LONDON (Alliance News) - LMS Capital PLC, an investment company in the process of realising its assets, Friday launched a tender offer to return up to GBP40.0 million to shareholders.
If approved, the tender offer would increase the amount returned to shareholders to GBP115.0 million since its realisation strategy was approved in November 2011.
The tender offer price will be calculated on May 27 based on the ratio of its net asset value, adjusted for price movements in quoted investments, changes in foreign currency rates of exchange, and purchases and sales of investments, to ordinary shares.
LMS Capital said Robert Rayne, a non-executive director, together with members of his extended family and associated trusts, could end up with an increase in their shareholding depending on the way shareholders participate in the tender offer. If not all shareholders tender their basic entitlement, Rayne, his family and associated trusts' shareholding could rise above their current 35.77% stake, meaning they would be required, under City rules on takeovers and mergers, to make an offer for all of the ordinary shares in the company not under ownership.
As a contingency measure, the trustees of a member of the group, which hold a 12.4% stake in the company, Friday undertook to tender their basic entitlement under the tender offer. In addition, they undertook to apply for such a number of shares that the group's aggregate holdings doesn't increase.
The results of the tender offer will be disclosed on May 28 at the market open.
Separately, LMS Capital said its net asset value per share increased by 6 pence to 94 pence in the three months ended March 31, due to selling its stake in Updata Infrastructure (UK) Ltd, as well as unrealised gains on its unquoted investments.
Since March 31, NAV per share has increased by about 1 pence, boosted by the improvement in Weatherford International's share price offsetting unrealised exchange losses due to the strengthening of the pound against the US dollar.
LMS Capital shares were Friday quoted at 84.50 pence, up 1.2%.
By Samuel Agini; [email protected]; @samuelagini
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