Last checked at 
9 Jun 2011 07:00
9 June 2011
LMS Capital plc Sale of interests in quoted investments and private equity limited partnerships
LMS Capital plc ("the Company" or "LMS"), a listed private equity investment company, today announces gross proceeds received and receivable of £45 million from the sale of non-core quoted and third-party funds since the beginning of the year.
The sale of legacy holdings and realisation of funds has been a key priority so that we have the financial resources to acquire profitable and growing companies. These realisations demonstrate further progress in the implementation of this strategy.
The key elements are:
* Listed Equity Divestment: We have sold our interest in the listed company ProStrakan ("PSK") for £23 million, a gain of £5 million (approximately 2 pence per share) since the end of 2010, pursuant to the scheme whereby KHK acquired 100% of PSK. PSK was a company that we invested in when private and subsequently assisted with an IPO. We stood by the company during its lengthy drug approval process with the US FDA and when complete realised value from selling to a large strategic investor. Furthermore, we have begun to divest our stakes in other non-core listed stocks and, to date in 2011, have realised in aggregate £6 million in gross proceeds. * Private Equity Funds Divestment: We have signed agreements for the sale of seven of our stakes in private equity funds located in the UK, US and Europe for gross consideration of £15.9 million in cash which represents 98% of book value at 31 December 2010. The final proceeds will be adjusted for capital calls and distributions by the seven limited partnerships between year end and completion. These sales will also reduce the Company's commitments in respect of uncalled capital relating to these interests by £ 6.8 million; on a pro forma basis total uncalled commitments for the Company at the end of March 2011 therefore reduce from £34.1 million to £ 27.3 million.
All £ amounts are based on 31 March 2011 rates of exchange. The transfers of the Company's interest in each of the limited partnerships are expected to complete in the next three months.
Glenn Payne, Chief Executive of LMS, commented:
"These sales demonstrate the continued focus and successful execution of our strategy as outlined last year. For investors, our focus continues to be on providing a quoted vehicle to own highly attractive but smaller unquoted companies that we can help achieve accelerated growth. With these realisations we confirm that we are doing what we have stated: we will be redeploying this capital in profitable and growing companies to join the portfolio alongside the likes of Updata, Apogee and Nationwide. Our acquisition efforts are ongoing both for earnings accretive new portfolio holdings and add-on investments."
For further information please contact:
LMS Capital plc 020 7935 3555
Glenn Payne, Chief Executive Officer
Tony Sweet, Chief Financial Officer
J.P. Morgan Cazenove 020 7588 2828
Michael Wentworth-Stanley
Brunswick Group LLP 020 7404 5959
Simon SporborgLeonora BurtenshawNotes to Editors
LMS Capital is an investment company with experience in private equity and development capital investment. Our objective is to deliver superior returns for shareholders through ownership of controlling stakes or positions of influence in profitable and growing companies run by experienced managers operating in sectors we know and where we expect to be able to add value. We aim to own companies and make follow-on investments in companies that will produce profits that contribute to an increasingly valuable and profitable LMS Capital. Our focus is on investing in high quality management teams and companies at favourable prices. We will continue to be cautious in our investment approach, aiming to grow our investments (and NAV) by 15%+ per annum without undue risk or investing in unproven businesses.
www.lmscapital.com
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