LONDON – Logistics Development Group plc (LDG), an AIM-quoted investing company, has announced the successful redemption of a £10 million investment following the disposal of the NashTech division by the Nash Squared group on Monday. The transaction has resulted in a cash distribution to LDG of approximately £13.1 million, which reflects a net internal rate of return (IRR) of about 36% for the investment period.
LDG’s wholly owned subsidiary, Fixtaia Limited, had invested in fixed rate unsecured Series A loan notes and payment in kind (PIK) notes issued by The Power of Talent Midco Limited. No fees were incurred by LDG on the redemption proceeds. The company’s cash position following the transaction is estimated at £44 million.
The LDG Board, in consultation with its investment manager, is also updating its distribution policy. Since December 2020, when LDG became an investing company, it has distributed roughly £27 million to its shareholders, mainly through share buybacks. The Board is now considering a tender offer to return up to £21 million to shareholders at a proposed price of 19p per share, pending shareholder approval.
Looking ahead, LDG plans to continue making distributions from the proceeds of future investment realizations. These distributions are expected to be equivalent to 50% of the net cash profits from each asset sale, although the exact timing will depend on market conditions.
Additionally, starting from December 2024, LDG intends to provide unaudited net asset value (NAV) estimates on a quarterly basis. The company anticipates announcing these estimates within two months following the end of each quarter.
This news is based on a press release statement and reflects the company’s current financial maneuvers and policy revisions, which are subject to shareholder decisions and market influences.
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