Sale of Updata Infrastructure (UK) Limited

RNS Number : 7108D

LMS Capital PLC

01 April 2014

 



1 April 2014

LMS Capital plc

Sale of Updata Infrastructure (UK) Limited ("Updata")

LMS Capital plc ("LMS Capital" or "the Company") is pleased to announce that it has sold its interest in Updata for net proceeds (after transaction expenses and carried interest) of £27.2 million. Updata is one of the UK's leading suppliers of IT network services and has been acquired by Capita plc for a cash consideration of £80 million on a cash free, debt free basis.

The net proceeds to the Company represent a 5.3 times return on cash invested and an IRR of 52% since acquisition in 2009. In isolation, this disposal increases the Company's net asset value per share by 5% (4p) compared to 31 December 2013.

Commenting on the sale of Updata, Martin Knight, Chairman of LMS Capital, said:

"The sale of Updata, our largest investment by value, is an excellent result for the Company and its shareholders and I should like to take this opportunity to thank all our team who worked to complete this transaction.

This sale demonstrates continued progress with the realisation strategy, and it is the Directors' current intention to make a further distribution to shareholders later in the year."

For further information please contact:

LMS Capital plc                                                                                                 020 7935 3555

Nick Friedlos, Director

Tony Sweet, Chief Financial Officer

J.P. Morgan Cazenove                                                                                   020 7742 4000

Michael Wentworth-Stanley

MHP Communications                                                                                  020 3128 8100

Tim McCall

Katie Hunt

About LMS Capital

LMS Capital is an investment company which, following a general meeting on 30 November 2011, is undertaking a realisation strategy with the aim of achieving a balance between an efficient return of cash to shareholders and optimising the value of the Company's investments. Its investment portfolio consists of small to medium sized companies across a range of sectors.

www.lmscapital.com

 

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