Literacy Capital PLC Literacy Capital announces sale (5031K)
August 29 2023 - 1:00AM
UK Regulatory
TIDMBOOK
RNS Number : 5031K
Literacy Capital PLC
29 August 2023
The information contained in this announcement is restricted and
is not for publication, release or distribution in the United
States of America, any member state of the European Economic Area,
Canada, Australia, Japan or the Republic of South Africa.
This announcement contains inside information.
29 August 2023
Literacy Capital plc ("Literacy" or the "Company")
Sale of major holding at significant premium, raising
substantial cash for the Company
Transaction highlights
-- Sale of another of Literacy's largest assets at >50% premium to carrying value
-- Literacy sells its entire interest in the business, receiving more than GBP20m in cash
-- GBP7.6m uplift to the asset's 31 March 2023 carrying value,
increasing NAV per share by 2.6% to 480.0p
-- The sale delivers a return in excess of 10x for shareholders,
with no carried interest payable by Literacy
-- Cash proceeds will be sufficient to repay Literacy's RCF in
full and allow for further new investments
Portfolio update
Literacy is pleased to announce that it has sold one of its
larger investments in full, generating a strong return for
shareholders and a substantial amount of cash, which will
ultimately fund future investments.
The transaction at completion will deliver a return for
shareholders in excess of 10x the capital invested and valuing
Literacy's stake at more than a 50% premium to the 31 March 2023
carrying value.
Following the transaction involving Kernel Global in March 2023
(which delivered a total return of 9.8x to shareholders and a 48.9%
premium to carrying value), this is another example of the progress
made by a portfolio company and value created since Literacy's
investment, as well as prudence in the fund's carrying
valuations.
Had the sold asset been valued on 31 March 2023 in line with the
valuation in this announcement, the Company's estimated net asset
value per share would have been 12.7p per share, or 2.6%, higher at
480.0p (31 March 2023: 467.3p as announced on 27 April 2023).
Literacy intends to use the cash proceeds to fully repay the
amounts drawn under its Revolving Credit Facility, before recycling
these proceeds into new investments. This represents another highly
profitable and successful investment for Literacy, demonstrating
the growing maturity and interest from large institutional
investors in Literacy's portfolio companies.
Signing and exchange subject to regulatory clearance exchange
has taken place, with clearance and completion expected by the end
of October. We will provide further information in September, once
details of the transaction can be disclosed in full.
Enquiries
For further information, please contact:
Literacy Capital plc / Literacy Capital
Asset Management LLP:
Richard Pindar / Tom Vernon +44 (0) 20 3960 0280
MHP Communications:
Reg Hoare / Ollie Hoare / Matthew Taylor +44 (0) 20 3128 8276
book@mhpgroup.com
Singer Capital Markets Securities Limited:
Robert Peel +44 (0) 20 7496 3000
About Literacy Capital:
Literacy Capital (BOOK.L) is an investment trust that was
launched in 2017 by Paul Pindar and Richard Pindar, before it
listed on the London Stock Exchange's main market in June 2021. The
Company focuses on opportunities to invest for the long-term in
growing private UK businesses where a clear route to creating
additional value can be seen. It also has a unique charitable
objective to donate 0.9% of annual NAV to charities focused on
improving literacy in UK children. GBP7.1 million has been donated
or reserved for donation to charities since the trust's creation in
2017 up until 30 June 2023. For more information, please visit our
website: www.literacycapital.com.
Website:
www.literacycapital.com
LEI: 2549006P3DFN5HLFGR54
A copy of this announcement will be available on the Company's
website at www.literacycapital.com.
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END
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