Sale of Interests

6 Oct 2006 10:41

Leo Capital Plc06 October 2006 6 October 2006 Leo Capital plc ("Leo Capital"/"the Company") SALE OF INTERESTS IN NINE US PRIVATE EQUITY LIMITED PARTNERSHIPS Leo Capital, the AIM listed investment company with stakes in public and privateUK and US companies and funds, is pleased to announce that it has signed anagreement for the sale of certain of its US limited partnership interests. The Company has agreed to sell its interests in nine limited partnerships forconsideration of US$21.1 million (£11.1 million) in cash which reflects apremium before costs of US$1.2 million (£0.6 million) over the value of thoseinterests at 31 March 2006 of US$19.9 million (£10.5 million). The finalproceeds will be adjusted for capital calls and distributions by the ninelimited partnerships between 31 March and completion. The sale will also reducethe Company's commitments in respect of uncalled capital relating to theseinterests by US$10.0 million (£5.3 million). At 31 March 2006 the Company's interests in private equity limited partnershipstotalled £72.4 million. Commitments to these funds in respect of uncalledcapital at that date were £54 million. In the year ended 31 March 2006, the nine limited partnership interests beingsold generated net realised gains of £158,000 and a net increase in fair valuesof £517,000. The management costs attributable to the nine interests were£532,000. The transfer of the Company's interest in each of the limited partnershipsinvolved is expected to be complete by the middle of November. Commenting on the transaction, Robert Rayne, Chief Executive Officer of theCompany, said: "As part of the active management of our capital we have takenadvantage of a strong secondary market. We shall use the proceeds to invest indirect investments as well as in new funds which offer co-investmentopportunities." For further information please contact: Leo Capital plc BrunswickRobert Rayne, CEO Simon SporborgTony Sweet, CFO Anisha PatelTel: 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 receive the demerged investment division of LondonMerchant Securities plc. The investment portfolio comprises investments in boththe US and UK, with a spread of early stage and second round technologyinvestments, development capital and mature company buy-outs.At 31 March 2006 the structure of the investment portfolio was as follows: US UK Total £'000 £'000 £'000 Quoted securities 37,897 18,924 56,821Unquoted securities 13,316 84,018 97,334Funds 62,291 10,154 72,445 ------- ------- ------- Total 113,504 113,096 226,600 ------- ------- ------- Website www.leocapitalplc.com This information is provided by RNS The company news service from the London Stock Exchange