LMS Capital PLC Sale of Penguin (2572R)
June 13 2018 - 3:50AM
UK Regulatory
TIDMLMS
RNS Number : 2572R
LMS Capital PLC
13 June 2018
13 June 2018
LMS Capital plc ("LMS" or the "Company")
Sale of Penguin - notification of proceeds of fund distribution
and realisation of the Company's co-investment holding.
The Company is pleased to announce that it has been informed by
the general partner of San Francisco Equity Partners Fund 1 ("SFEP
1") that the fund has received proceeds from the sale of its
investment in Penguin Computing, Inc., ("Penguin") and that the
transaction giving rise to those proceeds also includes the sale of
the Company's co-investment in Penguin.
Penguin supplies enterprise and high performance computing and
cloud computing solutions, principally in North America. The
Company owns its interest via its holding in SFEP 1 and through a
directly held co-investment. The Company's combined interest
amounts to approximately 19% of the equity of Penguin.
At 31 March 2018 the Company reported a carrying value of GBP1.7
million for its directly held co-investment and GBP10.9 million for
the interest held via SFEP 1 (jointly "Penguin holdings" with 31
March 2018 carrying value of GBP12.6 million). Penguin holdings
represented 20.9% of the Company's estimated net asset value at 31
March 2018.
Penguin has been acquired by Smart Global Holdings, Inc.
("Smart") a US quoted company providing specialist solutions to the
computing, networking, communications, storage, mobile and
industrial markets. (For Smart's announcement see www.smartgh.com
)
The acquisition price was up to $85 million, which includes $25
million of performance based payments that are made if certain
agreed upon targets are achieved during Penguin's financial year
ending 31 December 2018. In addition to the performance related
element of the acquisition price there are also amounts from the
price retained in escrow, and released subject to satisfaction of
certain conditions.
The Company has not yet received a formal distribution notice
from the general partner of SFEP 1, nor has it received sufficient
details of the transaction, including details of the conditions
attaching to the performance related element of the price, to
enable it accurately to assess the impact on the Company's net
asset value.
The general partner has however indicated that initial proceeds
to the Company are likely to amount to around 60% of the carrying
value of Penguin holdings, and that release of the escrow plus
payments under the performance related element of the price could
allow the company to receive proceeds equal to its carrying value,
or possibly a small premium, during the first half of 2019.
A further announcement will be made in the near future when the
Company has more information.
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 020 3837 6275
Martin Knight, Chairman
Gresham House Asset Management
Graham Bird, Investment Director 020 3837 6275
J.P. Morgan Cazenove
Michael Wentworth-Stanley 0207 742 4000
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCFJMPTMBIBMFP
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