TMT Investments PLC Sale of investment in Berryman (7300S)
December 05 2012 - 2:00AM
UK Regulatory
TIDMTMT
RNS Number : 7300S
TMT Investments PLC
05 December 2012
5 December 2012
TMT INVESTMENTS PLC
("TMT" or the "Company")
Sale of investment in Berryman
TMT Investments PLC, which invests in high-growth,
internet-based companies with the potential to become multinational
businesses, is pleased to announce the completion of the disposal
of its entire equity stake in Berryman Capital Group Ltd
("Berryman") for a total cash consideration of US$1,200,000.
TMT originally acquired new shares representing 20% of
Berryman's equity capital for an aggregate consideration of
$1,000,000 on 30 August 2011.
The cash consideration represents a 20% increase from Berryman's
latest carrying value of US$1,000,000 on TMT's balance sheet as of
30 June 2012. The transaction was completed today, and the Company
expects receipt of the consideration within the next five days.
Alexander Selegenev, Executive Director of TMT Investments PLC,
commented: "Given the dynamic nature of the internet market, TMT
continuously analyzes the developing trends and future potential of
the different segments in the sector and the performance of its
portfolio companies in order to reallocate capital effectively.
Although we naturally target higher return rates, in the case of
Berryman we decided that realising a 20% cash return over the
investment period of approximately 15 months was a good deal for
the Company's shareholders. We continue to have exposure to the
online gaming opportunity via our recent investment in AppsIndep, a
high-growth MMO games developer."
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 and has a significant number
of Silicon Valley investments in its portfolio. 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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