Lms Capital Regulatory News (LMS)

14 Jul 2006 08:06

Leo Capital Plc14 July 2006 14 July 2006 Leo Capital plc ("Leo Capital"/"the Company") RESULTS OF TENDER OFFER AND TRADING UPDATE Leo Capital is pleased to announce the results of the recent Tender Offer toshareholders and is also providing an update on current trading. . Terms used inthis announcement shall have the same meaning as those in the circular toshareholders dated 19 June 2006 ("the Circular"). Results of Tender Offer At the Extraordinary General Meeting of the Company held yesterday, 13 July2006, Shareholders approved the Tender Offer by the Company to purchase sharesof the Company up to a maximum value of £35 million on the terms set out in theCircular. The Tender Offer closed on 11 July 2006. The results of the Tender Offer were as follows: • 42,572,285 Shares were validly tendered pursuant to the Tender Offer. • The Tender NAV per Share is 88.79 pence. • On the basis of the Tender NAV per Share, with this quantum of valid tenders, the Tender Offer is not fully subscribed and all tenders can therefore be satisfied in full. • The Strike Price for the Tender Offer (calculated as set out in the Circular) is therefore 71.03 pence per Share, representing a 20% discount to the Tender NAV per Share of 88.79 pence. • Accordingly 42,572,285 Shares validly tendered will be purchased for a total cash consideration of £30.2 million. It is anticipated that the consideration for the tendered Shares to be purchased will be sent on 19 July 2006. • Following the completion of the Tender Offer (and cancellation of those Shares which have been repurchased) a total of 286,429,228 Shares will remain in issue. • The interests of the Concert Party will be equal to 43.57 % of the issued share capital of the Company immediately following completion of the Tender Offer. Current trading The unaudited net asset value per ordinary share of the Company at 30 June 2006was 88 pence (31 March 2006 pro-forma - 90 pence). The figure for 30 Junereflects the impact of the weakening of the US dollar against sterling sinceMarch on the value of our dollar based investments. If the results of the Tender Offer set out above are reflected in thecalculation as at 30 June, the net asset value per share would be 90 pence. Highlights: o The IPO of Bridgewell Securities in June resulted in the value of our holding increasing to £4.5 million; o In June we received cash of £0.7 million for part of our interest in Monogram Biosciences; o Following the management buyout of Vue Entertainment in June, we received a distribution of £2 million; o The fall in the share price of ProStrakan Group plc since 31 March 2006 has reduced the value of our holding by £3.4 million. This company yesterday announced details of a licence and collaboration agreement with Amgen to research, develop and commercialise certain of ProStrakan's products. It has also undertaken a share placing to provide additional working capital; o Deal flow has increased since the demerger and we have a number of substantial transactions under consideration. o A number of our portfolio companies are also considering potentially accretive acquisitions. Commenting on the results of the Tender Offer and current trading, Robert Rayne,Chief Executive Officer of the Company, said: "Following the successful demergerand admission of the Company to AIM on 12 June, we are pleased to report thatthe Tender Offer has achieved its objective of providing an opportunity forshareholders who wish to realise their investment in the Company to sell theirshares. Shareholders who have retained their shares have the benefit of anuplift in net asset value per share. We continue to see significant investment opportunities in our chosen sectors aswell as the potential for realisations from the current portfolio. The directorsremain confident that the current investments will contribute positively to theCompany's strategy of medium to long-term growth in shareholder value." For further information please contact:Leo Capital plc BrunswickRobert Rayne, CEO Simon SporborgTony Sweet, CFO Nina Coad Alex TweedTel: 020 7935 3555 Tel: 020 7404 5959 Notes to Editors Leo Capital plc is an independent investment company whose shares are traded onAIM. It was formed to hold the demerged investment division of London MerchantSecurities plc. The investment portfolio comprises investments in both the USand UK, with a spread of early stage and second round technology investments,development capital and mature company buy-outs. Website www.leocapitalplc.com This information is provided by RNS The company news service from the London Stock Exchange