TIDMTMT
RNS Number : 4808P
TMT Investments PLC
25 October 2012
25 October 2012
TMT INVESTMENTS PLC
("TMT" or the "Company")
Investment in Favim HoldingLimited
TMT Investments PLC, which invests in high-growth,
internet-based companies across a variety of sectors with the
potential to become multinational businesses, is pleased to
announce the completion of an investment in Favim Holding Limited
("Favim"), an online photo sharing and collecting service.
TMT has acquired 10,000 newly issued common shares representing
20% of Favim's fully diluted equity capital, for an aggregate
consideration of US$300,000.
The agreements between the parties include pre-emption rights,
information rights, veto rights and other rights and protections in
favour of TMT. Pursuant to its rights under the agreement, TMT has
appointed German Kaplun to the board of Favim.
TMT has an option to subscribe for additional shares in Favim
for an aggregate consideration varying from US$100,000 to
US$200,000. The option may be exercised after the first anniversary
of the transaction.
Favim has developed a system that allows users to add their own
or third-party images from the Web to their personal galleries on
favim.com in just two easy steps. Favim uses an innovative system
that uses colours as well as tags to identify unique and
inspirational pictures. The most successful web service comparable
to favim.com is Pinterest which, according to www.dreamgrow.com, is
currently a top 5 social networking site with over 1% global market
share in terms of audience.
Favim was incorporated in the British Virgin Islandsin July
2012, and is the brainchild of Artem Bachynskyi, a 22-year old
software engineer who graduated from Khmelnitsky National
University (Ukraine).
Alexander Selegenev, Executive Director of TMT Investments PLC,
commented: "Last year we invested in Wanelo, which is a social
store curated by users and successfully operating in the consumer
e-commerce segment through the use of visuals and social media. We
also invested in DepositPhotos, which provides web-based,
royalty-free access to millions of images, from vector graphics to
professional photos in an easy-to-use format. TMT's investment in
Favim is another step in diversifying and reinforcing our presence
in these markets, which we believe continue to represent a
promising investment opportunity."
Definitive agreements for the transaction were entered into, and
the transaction was completed, yesterday. Favim did not have any
financial accounts in respect of the year ended 31 December
2011.
For further information contact:
TMT Investments Plc +44 1534 281 843
Mr. Alexander Selegenev alexander.selegenev@tmtinvestments.com
www.tmtinvestments.com
ZAI Corporate Finance Ltd.
NOMAD and Broker
Marc Cramsie/Irina Lomova +44 20 7060 2220
Kinlan Communications Tel. +44 20 7638 3435
David Hothersall davidh@kinlan.net
About TMT Investments
TMT Investments PLC invests in high-growth, internet-based
companies across a variety of sectors with the potential to become
multinational businesses. Founded in 2010 and with capital
firepower of USD26m, TMT has invested in 21 companies to date. The
company's objective is to generate an attractive rate of return for
shareholders, predominantly through capital appreciation. The
company is traded on the AIM market of the London Stock Exchange.
www.tmtinvestments.com
The Investment Policy & Strategy
The Company's objective is to generate an attractive rate of
return for Shareholders, predominantly through capital
appreciation, by taking advantage of opportunities to invest in the
TMT Sector. The Company aims to provide equity and equity-related
investment capital, such as convertible loans, to private companies
which are seeking capital for growth and development, consolidation
or acquisition, or as a pre-IPO financing.
In addition, the Company intends to invest in publicly traded
equities which have securities listed on a stock exchange or
over-the-counter market. These investments may be in combination
with additional debt or equity-related financing, and in
appropriate circumstances in collaboration with other value added
financial and/or strategic investors.
The Company is not geographically restricted in terms of where
it will consider making investments. It will consider any
geographical area, to the extent that the investment fits within
the Company's investment criteria. The Directors and Consultants
have expertise in emerging markets and, in particular, in Russia
and the Commonwealth of Independent States. The Company will not be
subject to any borrowing or leveraging limits.
Private Companies
The Company will target small and mid-sized companies and will
seek to secure at least blocking stakes and board representation,
where it considers that the Company and/or an investee company
would benefit from such an appointment. The Company will consider
making equity investments in lower than blocking stakes only where
it sees ways to increase the stakes to blocking or controlling
stakes at a later date. Each investment is expected to be at least
US$250,000.
The investments targeted by the Company will aim to support
rapidly-growing private companies to increase market share and
achieve long-term shareholder value. It is envisaged that if the
Company invested in a private company prior to that company listing
on a stock market, the Company would retain a part of its
investment in the listed entity going forward. The Company intends
to work closely with the management of each investee company to
create value by focusing on driving growth through revenue
creation, margin enhancement and extracting cost efficiencies, as
well as implementing appropriate capital structures to enhance
returns.
Public Companies
When investing in public equities, the Company will seek to
select companies with a dominant market share or strong growth
potential in their respective segments. No restrictions will be
placed on the size of public companies in which the Company may
make an investment. The Directors intend to make investments in
companies or businesses with attractive valuation, growth
potential, with competent and motivated management, which enjoy
brand recognition, have scalable business models, have strong
relationships with customers and have in place transparent
accounting policies.
Realisation of Returns
The Directors will, when appropriate, consider how best to
realise value for Shareholders whether through a trade sale,
flotation or secondary refinancing of the investee companies. The
proposed exit route will form a key consideration of the initial
investment analysis.
The Company expects to derive returns on investments principally
through long-term capital gains and/or the payment of dividends by
investees. The primary ways in which the Company expects to realise
these returns include: (a) the sale or merger of a company; (b) the
sale of securities of a company by means of public or private
offerings; and (c) the disposal of public equity investments
through the stock exchanges on which they are listed.
For private investee companies the Company believes that its
typical investment holding period should provide sufficient time
for investee companies to adequately benefit from the capital and
operational improvements resulting from the Company's investment.
The targeted holding period shall be reviewed on a regular basis by
the Company, but it is expected that this will typically be between
two to four years. For public equities the Company's objective is
to maximise capital appreciation. Following the acquisition, the
Company will continue to conduct extensive research and monitoring
of the investment. Importance will be placed on the timing of any
disposal which will follow a thorough review of market conditions
and those reports and sources that are available to investors.
Should the Company consider that the capital appreciation of a
particular public equity investment has reached its peak or is
likely to or has begun to decline, then the Company will consider
the sale of that investment.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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