TIDMTMT
RNS Number : 8808Q
TMT Investments PLC
12 November 2012
12 November 2012
TMT INVESTMENTS PLC
("TMT" or the "Company")
Investment in AppsIndep, Ltd.
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 Appsindep, Ltd.
("AppsIndep"), a developer and publisher of online games.
TMT has acquired 146 newly issued and 267 existing class-B
ordinary shares representing 19.24% of AppsIndep's fully diluted
equity capital, for an aggregate consideration of approximately
US$1,858,685.
The agreements between the parties include pre-emption rights,
information rights and other rights and protections in favour of
TMT.
AppsIndep's aim is to become a leading online game developer and
publisher, initially in Russia, and then internationally. The
company primarily develops Massively Multiplayer Online ("MMO")
games based on its proprietary game engine and development
platforms. A game engine is a system designed for the creation and
development of video and online games. Strong technology, creative
game design capabilities, and extensive knowledge of the online
gaming market enable AppsIndep to regularly introduce new popular
games by continuously adapting to changing customer preferences and
market trends. AppsIndep's current game portfolio includes Affected
Zone and Medieval Online, with a number of other online games under
development. In addition, the company publishes games created by
external developers.
The active online gaming audience in Russia in 2010 reached 17.9
million people. Compared to 2009, the number of Russian online
gamers grew by over 25%, mainly thanks to the rapid spread of
online social games. Although smaller than social games in terms of
audience, the Russian MMO gaming segment accounted for over 78% of
the total Russian online gaming revenue in 2009. The MMO segment in
Russia is expected to remain the largest online gaming segment in
terms of revenue and reach US$748.8m by 2015 (according to J'son
and Partners).
AppsIndep was incorporated in Cyprus in March 2011 by a team of
experienced professionals who previously launched and operated a
number of successful online gaming projects. Current CEO Nikolay
Sitnikov previously held executive positions in a number of online
gaming companies, where he was responsible for developing and
launching a number of successful game titles, including Total
Influence and One World.
Alexander Selegenev, Executive Director of TMT Investments PLC,
commented: "TMT's investment in AppsIndep is a further step in
gaining exposure to the online gaming market, having already
invested in Berryman Capital Group, an online games developer for
social networks. This market is highly competitive, which places
even greater importance on the quality of the team, product, and
marketing execution. We believe that our investment will help
AppsIndep to expand more quickly into the fast growing mobile
segment (on both iOS and Android platforms) and launch a number of
new high quality products in Russia and internationally."
Definitive agreements for the transaction were entered into, and
the transaction was completed, on 9 November 2012. In respect of
the year ended 31 December 2011, AppsIndep's unaudited net loss
amounted to US$4,625, and unaudited net liabilities as at that date
amounted to US$1,789.
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 22 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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