Mobeus Income & Growth 4 VCT PLC Realisation of investment in Entanet Holdings Ltd (2016K)
05 July 2017 - 8:33PM
UK Regulatory
TIDMMIG4
RNS Number : 2016K
Mobeus Income & Growth 4 VCT PLC
05 July 2017
Mobeus Income & Growth 4 VCT plc ("MIG4 VCT" or the
"Company")
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no. 596/2014
Realisation of investment in Entanet Holdings Limited
5 July 2017
The Board is pleased to draw your attention to an announcement
made this morning by AIM quoted CityFibre Infrastructure Holdings
plc ("CityFibre"). The announcement discloses CityFibre's
conditional agreement to purchase the entire issued share capital
of Entanet Holdings Limited, a MIG4 VCT portfolio company, for a
consideration of GBP29 million, on a debt free and cash free basis.
GBP4.83 million is payable in cash to MIG4 VCT on completion, while
GBP0.50 million is deferred consideration potentially payable over
the next two years. This agreement is conditional upon CityFibre
raising the funds to finance this acquisition by a Capital Raising,
also referred to in their announcement this morning. Completion of
this sale is anticipated on or before 4 August 2017.
Assuming the sale of this investment completes, the Board
believe that its impact upon the net asset value ("NAV") of MIG4
VCT would be an increase of an estimated 5.03 pence per share over
the NAV per share last announced as at 31(st) March 2017 of 102.25
pence. In addition, if deferred consideration is eventually
received, it would result in a further estimated increase in NAV of
1.01 pence per share.
Upon completion and excluding deferred consideration, the
transaction would deliver to the Company a realised gain over cost
of GBP2.66 million, being 5.35 pence per share.
The transaction involves all four Mobeus advised VCTs. Upon
completion, and excluding deferred consideration of GBP2.20
million, total cash proceeds received by the four Mobeus advised
VCTs over the life of their investment in Entanet Holdings Limited
will be GBP23.97 million, against an original investment of GBP9.50
million. This represents a return of 2.52 times the original cost
for each VCT and an IRR of 38% in the three and a half years that
this investment was held.
Over and above the impact of this disposal, as of today's date,
the Board is unaware of any matter that would cause a material
change in the Company's net asset value per share.
The Board advises shareholders that it will be announcing an
updated NAV per share for MIG4 VCT as at 30 June 2017, as part of
its Half-Year report to shareholders, in August 2017.
For further information, please contact:
Robert King, for Mobeus Equity Partners LLP, Company Secretary
020 7024 7616
This information is provided by RNS
The company news service from the London Stock Exchange
END
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