Set-back for investor
Prelude Trust, the Cambridgeshire investor in young technology businesses, has been forced to start from scratch in a bid to push through a £5 million share buy-back. Its original tender offer has had to be withdrawn because it contravened a section of The Companies Act.Prelude Trust, the Cambridgeshire investor in young technology businesses, has been forced to start from scratch in a bid to push through a £5 million share buy-back. Its original tender offer has had to be withdrawn because it contravened a section of The Companies Act.
The board decided to implement the tender offer after meetings with shareholders that indicated that a significant number wished for some capital to be returned.
This situation has not changed so a Prelude board meeting has unanimously agreed to arrange for a new tender offer on substantially the same terms.
It will require approval by shareholders following which court approval will be sought to reduce further the company’s share premium account
This will reduce Prelude’s undistributable reserves to a level that will meet statutory requirements.
A new circular will be sent to shareholders as soon as practicable, setting out the details of the new tender offer and giving notice of an EGM to be held in June.
Subject to shareholder approval, it is expected that court approval will be sought in mid-July and that the new tender offer will be completed before the end of July.
The net asset value (NAV) of Prelude’s investments at the end of its financial year had increased 2 per cent to £54.8 million, the equivalent of 145p per share (2005: 142p per share).
Realisations totalled £5.6m during the year. A further £8.5m was invested in seven existing portfolio companies and three newcomers.
o Prelude Trust in Cambridge has invested £1.23 million in Xanadu Wireless BV, a fabless semiconductor company based in the Netherlands developing products for the ZigBee market.
The investment is the first part of a larger financing round being provided by Prelude, GIMV and Motorola Ventures. The Trust has a 19.4 per cent shareholding in the company.