LMS Capital has announced gross proceeds received and receivable of £45m from the sale of non-core quoted and third-party funds since the beginning of the year.
The sale of legacy holdings and realisation of funds has been a key priority so that we have the financial resources to acquire profitable and growing companies.
These realisations demonstrate further progress in the implementation of this strategy.
The key elements are:
* Listed equity divestment: LMS has sold its interest in the listed company ProStrakan for £23m, a gain of £5m (approximately 2 pence per share) since the end of 2010, pursuant to the scheme whereby KHK acquired 100% of PSK.
PSK was a company that LMS invested in when private and subsequently assisted with an IPO. LMS stood by the company during its lengthy drug approval process with the US FDA and when complete realised value from selling to a large strategic investor.
Furthermore, LMS has begun to divest its stakes in other non-core listed stocks and, to date in 2011, has realised in aggregate £6m in gross proceeds.
* Private equity funds divestment: LMS has signed agreements for the sale of seven of its stakes in private equity funds located in the UK, US and Europe for gross consideration of £15.9m in cash which represents 98% of book value at 31 December 2010.
The final proceeds will be adjusted for capital calls and distributions by the seven limited partnerships between year end and completion.
These sales will also reduce the company's commitments in respect of uncalled capital relating to these interests by £6.8m; on a pro forma basis total uncalled commitments for the company at the end of March 2011 therefore reduce from £34.1m to £27.3m.
At 8:34am: (LON:LMS) share price was +0.75p at 64.5p
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