LONDON, UK: Literacy Capital has achieved a major milestone by divesting a significant investment, delivering substantial gains for shareholders and boosting its cash reserves for future ventures.
The successful transaction has generated a remarkable return for shareholders, exceeding 10 times the initial capital investment. Valuing Literacy’s stake at over a 50% premium compared to the carrying value on March 31, 2023, this sale further highlights the strategic value the company has added to its portfolio.
This accomplishment follows the Kernel Global transaction earlier in March 2023, which resulted in a remarkable total return of 9.8 times for shareholders and a substantial 48.9% premium over the carrying value. These successes reflect the continuous progress of Literacy’s portfolio companies and validate the prudent valuation practices adopted by the fund.
Had the recently sold asset been appraised at the valuation mentioned in this announcement on March 31, 2023, the estimated net asset value per share would have risen by 2.6% to 480.0p, up from 467.3p on March 27, 2023.
In a strategic move, Literacy plans to utilize the proceeds from this divestment to fully repay its Revolving Credit Facility, paving the way for reinvestment into new opportunities. This achievement serves as a testament to Literacy’s prowess in identifying highly profitable investment avenues that captivate the attention of major institutional investors.
The transaction, including signing and exchange, is pending regulatory clearance, with completion projected by the end of October. More comprehensive details of this significant achievement will be unveiled in September as soon as they can be disclosed.