24 Jun 2016 07:00
MXC Capital Limited
("MXC" or the "Company")
Sale of Redcentric Shares
MXC Capital Limited (AIM: MXCP), the technology focused merchant bank, announces that on 23 June 2016, it sold 5.8 million shares in Redcentric plc ("Redcentric") at a price of 180 pence per share resulting in gross proceeds of £10.44 million (the "Disposal").
MXC was an original shareholder in Redcentric at the time of its demerger from Redstone plc and subsequent IPO and has supported the company in identifying and executing accretive M&A opportunities while acting as a cornerstone investor in each of its public funding rounds.
The original cost of MXC's investment in Redcentric was £3.4 million, hence the Disposal will result in a realised gain of £7.04 million.
Following the Disposal, MXC holds 49,108 shares and 8.7 million options over shares in Redcentric plc, of which 1.7 million are exercisable at 32 pence per share and the remaining 7 million are exercisable at 80 pence per share. Tony Weaver, founder of MXC, will remain on the board of directors of Redcentric as a non-executive director, having stepped down from the role of CEO in November 2015. MXC Capital Markets LLP continues to act as financial adviser to Redcentric.
For the year ended 31 March 2016, Redcentric reported profit before tax of £7.4 million. As at 31 March 2016, it had net assets of £97.5 million.
The proceeds of the Disposal will be utilised in line with the Company's stated strategy of returning net proceeds of realisations after retaining sufficient investment capital in the business.
MXC Capital Limited
Marc Young
+44(0)20 7965 8149
Zeus Capital Limited (Nominated adviser and broker)
Nick How
+44 (0)20 7533 7727
Alma PR
Josh Royston / Hilary Buchanan
+44 (0)7780 901979/+44 (0) 7515 805218
About MXC Capital (www.mxccapital.com)
MXC is a specialist merchant bank with a track record of investing in and advising companies in the TMT sector. We bring together a deep knowledge of technology, first-hand experience of managing companies in the sector, an ability to make meaningful investments and a highly experienced corporate advisory team in support, all of which we combine to grow shareholder value.