14th Aug 2019 10:40
(Alliance News) - Private equity firm LMS Capital PLC said Wednesday the sale of investee Entuity Ltd was completed on Tuesday, with LMS pocketing GBP10.5 million in the process.
In late July, LMS accepted a deal to acquire its holding in network software firm Entuity. It didn't say to whom Entuity was sold. At the end of 2018, Entuity had been the third-largest asset at LMS at 8.2% of net asset value and a carrying value of GBP4.9 million.
The completion of the sale will see LMS receive GBP10.5 million in net cash proceeds, an increase of GBP2.4 million over the net proceeds recognised in its accounts to the end of June. The increase "reflects the sale not only of all the company's shares, but also the repayment of all working capital loans". The sale will see a boost in NAV.
At the end of June, LMS reported a GBP59.1 million net asset value.
Graham Bird, the investment manager of LMS from Gresham House Asset Management, said: "We are delighted on the realisation of Entuity which has been a complex transaction, but very successful from an LMS shareholder value perspective."
"This leaves the company with a strong balance sheet from which to progress to the next stage of its journey as an attractive specialist private equity vehicle," Bird added.
Shares in LMS were untraded at 50.52 pence in London on Wednesday.
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