Slaughter and May is advising LMS Capital plc - proposed change to its investment policy

Slaughter and May is advising LMS Capital plc on a proposed change to its investment policy and a return of capital of up to £6 million to shareholders through a tender offer and repurchase of up to 7.72% of the company’s issued share capital. The tender offer will be at a 5 per cent. discount to the company’s net asset value per share as at 30 June 2016.

LMS Capital is proposing to change its investment policy from the current realisation strategy to a new policy predominantly focused on private equity investment. If the proposed investment policy is approved by shareholders, the company will appoint Gresham House Asset Management Limited (a subsidiary of Gresham House plc) as its investment manager to carry out the new investment policy and to manage the company’s assets on a discretionary basis.

LMS Capital is also proposing two further tenders (and associated repurchases) together representing 50% of the net proceeds of further disposals of assets in the company's existing portfolio.

A circular setting out the full details of the proposals and containing a notice of general meeting was sent to shareholders on 27 July 2016.

LMS Capital is an investment company focused on small to medium sized companies in the consumer, energy and business services sectors.