Avanti Capital PLC Disposal (2393Y)
May 13 2016 - 8:30AM
UK Regulatory
TIDMAVA
RNS Number : 2393Y
Avanti Capital PLC
13 May 2016
13 May 2016
Avanti Capital plc ("Avanti" or the "Company")
Conditional disposal of investment in Mblox Inc.
Avanti is pleased to announce that MBlox Inc. ("MBlox") has
today entered into a definitive merger agreement with CLX
Communications AB (publ) ("CLX"), under which CLX will acquire 100%
of the shares in MBlox for a cash consideration of US$117 million,
on a cash-free and debt-free basis (the "Transaction"). Completion
of the Transaction is not subject to any regulatory approvals or
financing, but is subject to certain other customary conditions for
a transaction of this size and type. Completion is expected to take
place in early July 2016.
Pursuant to the Transaction, Avanti has conditionally disposed
of its total investment in MBlox, comprising both equity and debt.
The carrying value as at 31 December 2015 of the Company's total
investment in MBlox was approximately GBP3.36 million. The
consideration for the total investment in MBlox is approximately
US$3.8 million (approximately GBP2.6 million), payable in cash,
subject to customary escrow arrangements for a proportion of the
consideration. Accordingly, the Company will recognise a loss on
disposal of approximately GBP0.8 million. On completion, the sale
proceeds will be retained in the Company's bank account.
A further update will be provided in due course, including
completion adjustments pursuant to the Transaction. In addition, an
update will be provided in respect of amounts payable to Odyssey
Partners Limited, the Company's investment advisor, following
completion.
In accordance with paragraph 5.6 of the AIM Note for Investing
Companies, which forms part of the AIM Rules, where a company
admitted to trading on AIM disposes of all, or substantially all,
of its assets (which would include the disposal of Avanti's
investment in MBlox), it has a period of 12 months from the date of
the disposal to implement its investing policy. If this is not
fulfilled, the Company's shares will be suspended from trading on
AIM.
Enquiries:
Avanti Capital plc Tel: 020 7299 1459
Richard Kleiner
Panmure Gordon (UK) Limited Tel: 020 7886 2500
Andrew Potts / Atholl Tweedie
This information is provided by RNS
The company news service from the London Stock Exchange
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