StockMarketWire.com - Venture capital company TMT Investments agreed to dispose its entire holding in Wrike for $22.9m, which will result in a substantial increase in the company's cash resources and its net asset value (NAV).

The board of TMT believes the disposal demonstrates the company's ability to identify and invest in early-stage high-growth companies within the technology sector that have the ability to create significant shareholder value through capital appreciation.

The disposal represents a substantial uplift in the valuation of TMT's investment in Wrike of approximately $14.5m and will, on receipt of funds, result in a material increase in the company's available cash to over $25m.

The company will continue to seek to identify and invest in opportunities within the technology sector and will keep shareholders updated of developments in this regard as appropriate.

TMT Investments also took the prudent decision to impair its investment in Wanelo by approximately $3.5m.

Despite the impairment of Wanelo, the disposal will result in a significant increase in the company's NAV of approximately $11m, equivalent to approximately 37.5c per share (before adjustments for ongoing operating expenses, bonus accruals, insignificant revaluations, potential future impairments, and similar items).

This represents a material uplift in the company's NAV of approximately 13.7% from the previously stated figure of $2.75 per share as of 30 June 2018.

WRIKE

As announced on 30 November 2018, Wrike completed a majority investment from Vista Equity Partners, a leading investment firm focused on software, data and technology-enabled businesses.

Under this transaction, TMT entered an agreement with Vista to dispose of its entire holding in Wrike for a total net cash consideration of approximately $22.9m (with approximately $0.3m of this amount being deferred consideration that will be payable subject to certain adjustments over a period of 18 months).

The total consideration represents a substantial valuation uplift of approximately $14.5m (or 173%) in the value of TMT's investment in Wrike, compared to its valuation of $8.4m as at 30 June 2018, being equal to the valuation of Wrike at the time of TMT's partial disposal as announced on 19 September 2017.

The receipt of funds in connection with the disposal is expected shortly. A further announcement will be made as appropriate.

WANELO

TMT has decided to impair its investment in Wanelo, the online curated shopping mall, by 66%. This represents a reduction of approximately $3.5m in the fair value of TMT's investment in Wanelo to approximately $1.8m, compared to the previous stated valuation as at 30 June 2018.




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