LMS Capital has announced that it has been informed by the general partner of the San Francisco Equity Partners Funds (SFEP Funds) that the funds have received cash proceeds from a partial realisation of holdings in YesTo and that the general partner intends shortly, to make a distribution. LMS Capital says that, whilst it not yet received a formal distribution notice, the general partner has indicated that the distribution to the Company is likely to be between $11million and $12million.
LMS Capital says that it is its understanding that the realisation relates to approximately half of the holding in YesTo. However, it says that sufficient details of the underlying transaction have not yet been received from the general partner of SFEP Funds and , that, as a result, it is not yet in a position accurately to assess the appropriate carrying value of the balance of the holding in YesTo and the implications of the transaction on the Company’s net asset value. However, LMS Capital says that, at 31 December 2016, it reported a carrying value of £8.4m in respect of its entire holding in YesTo.
Tender offer
On 6 June 2017, the Board of LMS Capital announced that it intended to make a tender offer of £6million to shareholders (this being the first of two further tender offers proposed by the Company in its 2016 Circular). It says that the distribution from SFEP Funds, if received in line with the indications from the general partner, would represent a significant increase in the Company’s liquid resources. Reflecting this, the Board says that it is considering whether, and if so by how much, it would be able to increase the amount of the tender offer announced on 6 June 2017. the company says that a further announcement will be made in the near future.
About LMS Capital
LMS Capital is an investment company focused on predominantly private equity investment into small to medium sized companies in our preferred sectors of consumer, energy and business services. Following a General Meeting on 30 November 2011, the Company is undertaking a realisation strategy which aims to achieve a balance between an efficient return of cash to Shareholders and optimising the value of the Company’s investments.
LMS Capital assessing tender proposals in light of YesTo realization : LMS