REG - LMS Capital PLC - Portfolio Update

LMS CapitalAnnouncement

27/12/2023 07:00

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RNS Number : 8465X  LMS Capital PLC  27 December 2023

 

 

 

 

 

 

 

 

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 

27 December 2023

 

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

Sale of investment

 

The Company is pleased to announce the sale of its minority interest in
Medhost Inc.  Net proceeds for LMS are estimated to be approximately $8.6
million, of which $7.0 million will be paid cash at closing and $1.6 million
by way of a promissory note that will be settled one year after closing and
will accrue interest at 11.25% per annum.

 

The net proceeds of $8.6 million are some $1.6 million in excess of the book
value of Medhost at 30 September 2023, the most recently announced net asset
value of the Company. At current exchange rates this represents an increase of
approximately £1.0 million.

 

This announcement follows last week's announcement of LMS' acquisition of
Castle View Retirement Village, Windsor with the intention of developing an
investment platform in the retirement living sector.

 

Both the acquisition of Castle View and the sale of Medhost represent
significant steps forward for the Company.

 

Background to Medhost

LMS' interest in Medhost was a co-investment with Primus (one if its US fund
interests) dating back to 2007.  In 2013 Medhost undertook a recapitalisation
of its business, borrowing $112 million to fund preferred stock redemptions
and dividends to shareholders.  LMS received $10.1 million as a result of
this exercise, meaning that the current transaction represents a surplus over
the initial cost of the investment.

 

Medhost is a healthcare information technology group that designs, develops,
installs and supports integrated hospital information systems and services
into a single-source solution for community and specialty hospitals in the US.
Its products are cloud-based clinical, financial and operational solutions. As
well as software and hardware implementation the company also provides
maintenance, support and consulting. The company was founded in 1984 as
Healthcare Management Systems and is headquartered in Nashville, Tennessee.

 

Robert Rayne, Chairman, commented: "I am delighted, following last week's
announcement of our acquisition in the retirement living sector, to now be
able to report this exit and at a value greater than our book amount. It
represents significant progress in the realisation our remaining portfolio of
mature assets."

 

The person responsible for arranging the release of this announcement on
behalf of the Company is IQ EQ Corporate Services (UK) Limited, the Company
Secretary

 

 

 

For further information please contact:

 

LMS Capital plc - Nick Friedlos, Managing Director

0207 935 3555

 

Shore Capital - Robert Finlay/Rose Ramsden

0207 408 4050

 

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