News blog
Managed Support Services
- BY: Andrew Hore |
- POSTED: 28/11/2011 |
Octopus Investments has sold nearly all of its stake in Managed Support Services and it could have made a significant loss on its investment.
The sale follows the news that MSS will become a shell after the proposed sale of its building services operations.
Octopus was adding to its shareholding as recently as last month, which took its stake above 10%. The fund manager has sold nearly 21.5m shares, leaving it with 20,000 shares. Octopus took up shares in the £3.1m placing at 7p a share to finance the acquisition of Environmental Control Services in August 2010.
At 1.12p a share, MSS is valued at £2.36m.
The building services division has been sold to Initial Facilities Management for up to £6.5m. MSS will receive an initial £4m in cash with up to £1.5m payable as long as at least £10.5m of customer contracts are transferred to the new owner. Nothing extra is payable if less than £8.4m of contracts are transferred. This will be based on the situation after three months. A further £1m will be retained by the buyer and half will be released when the completion balance sheet is published and the other half held for a further six months in order to cover any warranty claims. During the summer the MSS’s compliance division was sold to Capita for £3.85m.
Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFNovember2011_26.pdf
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