LMS Capital PLC Increase in Tender Offer (2118J)
June 27 2017 - 2:00AM
UK Regulatory
TIDMLMS
RNS Number : 2118J
LMS Capital PLC
27 June 2017
27 June 2017
LMS Capital plc (the "Company")
Increase in tender offer from GBP6 million to GBP11 million
On 6 June 2017 the Board announced that the Company intended to
make a tender offer of GBP6 million to shareholders, being the
first of two further tender offers proposed by the Company in its
July 2016 Circular.
On 15 June 2017 the Board announced that the Company had been
informed by the general partner of San Francisco Equity Partners
("SFEP"), that it would shortly receive a distribution, in the
region of $11 million to $12 million, following the partial
realisation by SFEP of its holdings in YesTo.
The Board now announces:
-- The Company has received the distribution from SFEP, the
final amount of which was $11.6 million;
-- In light of this significant increase in liquid resources,
the Board considered whether it was able to increase the amount of
the tender previously announced on 6 June 2017. The Board
determined that the tender should be increased to GBP11 million,
thereby satisfying in full the proposals in the July 2016 Circular
to return this amount to shareholders.
It is the Company's intention that the tender offer be launched
at the same time as, or shortly after, the Company announces its 30
June 2017 results. In accordance with the July 2016 Circular, the
tender offer price will be determined by reference to a 5 per cent
discount to the 30 June 2017 net asset value reported in those
results.
The tender offer, once completed, will bring to GBP17 million
the amount returned to shareholders since the Company's July 2016
Circular when Gresham House Asset Management was appointed to
manage the Company's portfolio. This final tender offer will bring
the total amount returned to shareholders to GBP172 million since
the Company commenced its realisation policy in January 2012, at
which time the market capitalisation was approximately GBP153
million.
Future investment
Following changes to the Company's investment policy approved by
shareholders in August 2016, LMS focuses predominantly on private
equity investment and specialist asset classes.
The Investment Committee will continue to oversee the remaining
assets, to determine how best to maximise shareholder value, and at
the same time oversee the implementation of the new investment
policy. Following completion of the tender offer announced above,
the Company will have met in full its proposals to make further
returns of cash to shareholders and will be well placed to progress
the implementation of its new investment policy. In future, it is
the intention of the Company to return to shareholders an amount in
the region of 30 per cent of annual realised cash profits from
investments made pursuant to the new investment policy and in doing
so, to generate a dividend yield over the longer term.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information please contact:
LMS Capital plc
Martin Knight, Chairman 020 7935 3555
Gresham House Asset Management
Limited
Graham Bird 020 3837 6270
J.P. Morgan Cazenove
(Corporate Broker) 020 7742 4000
Michael Wentworth-Stanley
This information is provided by RNS
The company news service from the London Stock Exchange
END
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