Avanti Capital PLC Disposal (2393Y)

TIDMAVA

RNS Number : 2393Y

Avanti Capital PLC

13 May 2016

13 May 2016

Avanti Capital plc ("Avanti" or the "Company")

Conditional disposal of investment in Mblox Inc.

Avanti is pleased to announce that MBlox Inc. ("MBlox") has today entered into a definitive merger agreement with CLX Communications AB (publ) ("CLX"), under which CLX will acquire 100% of the shares in MBlox for a cash consideration of US$117 million, on a cash-free and debt-free basis (the "Transaction"). Completion of the Transaction is not subject to any regulatory approvals or financing, but is subject to certain other customary conditions for a transaction of this size and type. Completion is expected to take place in early July 2016.

Pursuant to the Transaction, Avanti has conditionally disposed of its total investment in MBlox, comprising both equity and debt. The carrying value as at 31 December 2015 of the Company's total investment in MBlox was approximately GBP3.36 million. The consideration for the total investment in MBlox is approximately US$3.8 million (approximately GBP2.6 million), payable in cash, subject to customary escrow arrangements for a proportion of the consideration. Accordingly, the Company will recognise a loss on disposal of approximately GBP0.8 million. On completion, the sale proceeds will be retained in the Company's bank account.

A further update will be provided in due course, including completion adjustments pursuant to the Transaction. In addition, an update will be provided in respect of amounts payable to Odyssey Partners Limited, the Company's investment advisor, following completion.

In accordance with paragraph 5.6 of the AIM Note for Investing Companies, which forms part of the AIM Rules, where a company admitted to trading on AIM disposes of all, or substantially all, of its assets (which would include the disposal of Avanti's investment in MBlox), it has a period of 12 months from the date of the disposal to implement its investing policy. If this is not fulfilled, the Company's shares will be suspended from trading on AIM.

Enquiries:

   Avanti Capital plc                                            Tel: [phone] 

Richard Kleiner

   Panmure Gordon (UK) Limited                  Tel: [phone] 

Andrew Potts / Atholl Tweedie

This information is provided by RNS

The company news service from the London Stock Exchange

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May 13, 2016 08:30 ET (12:30 GMT)