Walker Crips has transferred convertible unsecured loan stock (Culs) issued as part of Liontrust’s purchase of its asset management business last year.
Walker Crips Group converted the Culs, with a nominal value of £3.03m, into ordinary Liontrust shares of 1p each, before selling those shares at 217.6p per share for a total of £6.6m.
The cash boost came because Liontrust shares have soared in value since it purchased Walker Crips asset management business, climbing 129 per cent in the past year.
Rodney FitzGerald, chief executive of Walker Crips, said: “The opportunity to convert the vast majority of the remaining Culs and sell the shares at a price substantially above the conversion price has allowed the company to realise an overall gain on the disposal of Walker Crips Asset Managers Limited, which is substantially in excess of the headline value announced in April 2012 and to strengthen further the company’s balance sheet and financial flexibility.
“The net proceeds of the sale of the shares will be used to drive our continuing strategy of growth and expansion.”