TMT Investments PLC Disposal of interest in Wrike and portfolio update (8655L)
January 02 2019 - 1:00AM
UK Regulatory
TIDMTMT
RNS Number : 8655L
TMT Investments PLC
02 January 2019
2 January 2019
TMT INVESTMENTS PLC
("TMT" or the "Company")
US$22.9 million disposal of TMT's interest in Wrike and
portfolio update
TMT Investments PLC (AIM: TMT.L), the venture capital company
investing in high-growth technology companies, is pleased to
announce that it has agreed to dispose of its entire holding in
Wrike, Inc. ("Wrike") for a net aggregate cash consideration of
US$22.9 million (the "Disposal"). The Disposal will result in a
substantial increase in the Company's cash resources and its net
asset value ("NAV").
The Board of TMT believes that the Disposal demonstrates the
Company's ability to identify and invest in early-stage high-growth
companies within the technology sector that have the ability to
create significant shareholder value through capital
appreciation.
The Disposal represents a substantial uplift in the valuation of
TMT's investment in Wrike of approximately US$14.5 million and
will, on receipt of funds, result in a material increase in the
Company's available cash to over US$25.0 million. The Company will
continue to seek to identify and invest in opportunities within the
technology sector and will keep shareholders updated of
developments in this regard as appropriate.
The Company has also taken the prudent decision to impair its
investment in Wanelo, Inc. ("Wanelo") by approximately US$3.5
million.
Despite the impairment of Wanelo, the Disposal will result in a
significant increase in the Company's NAV of approximately US$11.0
million, equivalent to approximately 37.5 cents per share (before
adjustments for the Company's ongoing operating expenses, bonus
accruals, insignificant revaluations, potential future impairments,
and similar items). This represents a material uplift in the
Company's NAV of approximately 13.7% from the previously stated
figure of US$2.75 per share as of 30 June 2018.
Wrike
As announced on 30 November 2018, Wrike (www.wrike.com), the
collaborative work management platform for high-performance teams,
completed a majority investment from Vista Equity Partners
("Vista"), a leading investment firm focused on software, data and
technology-enabled businesses.
As part of this transaction, TMT has entered into an agreement
with Vista to dispose of its entire holding in Wrike for a total
net cash consideration of approximately US$22.9 million (with
approximately US$0.3 million of this amount being deferred
consideration that will be payable subject to certain adjustments
over a period of 18 months). The total consideration represents a
substantial valuation uplift of approximately US$14.5 million (or
173%) in the value of TMT's investment in Wrike, compared to its
valuation of US$8.4 million as at 30 June 2018, being equal to the
valuation of Wrike at the time of TMT's partial disposal as
announced on 19 September 2017.
The receipt of funds in connection with the Disposal is expected
shortly. A further announcement will be made as appropriate.
Wanelo
TMT has decided to impair its investment in Wanelo, the online
curated shopping mall, by 66%. This represents a reduction of
approximately US$3.5 million in the fair value of TMT's investment
in Wanelo to approximately US$1.8 million, compared to the previous
stated valuation as at 30 June 2018.
Alexander Selegenev, Executive Director of TMT, commented:
"Following Vista's partnership with Wrike, we are delighted to
have achieved our largest cash exit to date. Wrike has always been
one of our largest portfolio stars, and we are very pleased at
having identified such a talented and professional team, led by CEO
and founder Andrew Filev, as Wrike's very first institutional
investor back in 2012. TMT originally invested US$1.0 million in
Wrike, and the current exit proceeds are additional to the US$0.8
million TMT received from its partial exits from Wrike in 2017. The
Board believes that a total return of over 23 times on our original
investment demonstrates our ability to achieve significant capital
growth for our shareholders by identifying and investing in early
stage high-growth tech companies, which shareholders would be
unable to access otherwise. Our focus as investors is on
identifying companies that are capable of scaling up globally.
Founded in 2006, Wrike is today used by over 17,000 organisations,
with 1 million users in 130 countries.
TMT continues to exercise a diligent impairment policy, with the
Company's management using its discretion to impair individual
portfolio companies based on their perceived prospects, even in the
absence of formal transactions. Accordingly, we have taken the
decision to impair the carrying value of Wanelo to more accurately
reflect Wanelo's likely current valuation. Having originally
invested only US$350,000 in Wanelo in 2011, the new impaired value
of US$1.8 million still represents significant potential upside for
TMT."
This announcement is inside information for the purposes of
Article 7 of EU Regulation 596/2014.
For further information contact:
TMT Investments PLC +44 (0)1534 281 800
Alexander Selegenev (Computershare - Company Secretary)
Executive Director
www.tmtinvestments.com alexander.selegenev@tmtinvestments.com
Strand Hanson Limited
(Nominated Adviser)
Richard Tulloch
James Dance
Eric Allan +44 (0)20 7409 3494
Hybridan LLP
(Broker)
Claire Louise Noyce +44 20 3764 2341
Kinlan Communications +44 20 7638 3435
David Hothersall davidh@kinlan.net
About TMT Investments PLC
TMT Investments PLC invests in high-growth technology companies
across a number of core specialist sectors and has a significant
number of Silicon Valley investments in its portfolio. Founded in
2010, TMT has invested in over 40 companies to date and has latest
announced net assets of US$82m. The Company's objective is to
generate an attractive rate of return for shareholders,
predominantly through capital appreciation. The Company is traded
on the AIM market of the London Stock Exchange.
www.tmtinvestments.com.
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END
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