The London-headquartered secondaries firm first made an offer for AIM-listed Ludgate in December 2016 of 16 pence per share, which valued the company at £8.5 million ($11 million; €10 million). The firm improved its offer to 16.3 pence per share in January after Ludgate re-valued the business and the firm’s offer was accepted by shareholders at the end February.
The delisting is expected to be completed as early as April, according to a source familiar with the matter.
Ludgate had £11 million in net assets as of 30 September.
“We are pleased that the offer has enabled Ludgate shareholders seeking a final exit for their investment to achieve liquidity,” Christiaan de Lint, a founder and partner at Headway, said in a statement to the London Stock Exchange announcing the firm had received valid acceptances representing 57 percent of Ludgate shares.
“On behalf of Headway, we look forward to working with Gijs Voskamp and Ludgate Investments in supporting the remaining Ludgate Assets and maximising the value of the fund.”
Headway is backing the deal from its 2012-vintage €175 million Headway Investment Partners III. The firm invests in deals under €50 million with a focus on western Europe and North America, according to its website.
Ludgate listed in 2007 at a £25 million valuation. The company has six portfolio companies, the largest being food packaging manufacturer Rapid Action Packaging, which accounts for almost half of the firm’s net asset value.
Secondaries buyers have been taking advantage of currency fluctuations to acquire London-listed investment companies and take them private. In October, HarbourVest Partners closed an £807 million deal to acquire SVG Capital Partners and in October Kline Hill Partners acquired listed fund of funds Private Equity Investor in an almost £20 million deal.
– Adam Le contributed to this report.