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Logistics Development Group PLC on Thursday its investee Synsion TopCo has returned €4.1 million in a cash payment to make up for the fall in share value from Logistics Development loan.
Logistics Development is London-based investment company, while Synsion TopCo is a London-based private holding company. Synsion TopCo utilised Logistics Investment’s interest to acquire and additional stake in pan-European digital transformation business SQLI SA at €44.25, increasing its holding by 9% to 81%.
Logistics Development said the investment was initially made via a €18.5 million loan in December but is being converted into an 11% equity interest in Synsion Topco.
After further acquiring SQLI shares, Synsion has drawn on available debt funding, causing the implied equity value of the Logistics Development interest to be revalued at €14.4 million, said Logistics Development.
As a result, following an agreement with Logistics Development subsidiary Fixtaia Ltd, Synsion TopCo will capitalise the €18.5 million loan in return for the issue of the Logistics Development equity interest.
This is alongside making a cash payment of €4.1 million to Logistics Development, to make up the difference between the latter’s €18.5 million investment and the subsequent share capital revaluation.
Logistics Development noted Synsion Topco is an associate of DBAY Advisor Ltd, Logistics Development’s investment manager and 26% shareholder. As a result, the above agreement is being treated as a related party transaction.
Shares in Logistics Development were down 0.5% to 14.43 pence each in London on Thursday afternoon.
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