(Alliance News) - LMS Capital PLC on Thursday said it will seek approval from shareholders for a managed realisation of its assets, following a review of its options.
LMS Capital shares surged 16% to 21.40 pence in London on Thursday afternoon.
The London-based investment company said shareholder approval would see the "orderly realisation of the company's portfolio over time", with capital returned to shareholders and investments realised to maximise value.
LMS said it is exploring an initial distribution to shareholders which it intends to make as a capital distribution.
"The board is assessing the amount of any potential distribution in light of working capital and portfolio investment requirements," LMS Capital said.
The firm said it has engaged with key shareholders to consider how it can best deliver value to shareholders.
LMS Capital said it also considered the discount to net asset value at which its shares have been trading, the lack of liquidity of trading and the "limited prospects for achieving greater scale in the foreseeable future as well as wider market conditions".
Chair James Wilson said: "The board thanks shareholders for the constructive feedback provided as part of the shareholder engagement process. The extensive feedback has been invaluable in informing the board's decision-making process and in formulating proposals for a managed realisation of the company's assets.
"We do believe that there is embedded value in the company's portfolio investments, and we will work to convert this into value to be returned to shareholders in due course."
LMS Capital said a shareholder circular to convene a general meeting will be published towards the end of April.
By Michael Hennessey, Alliance News reporter
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