MXC Capital (LON: MXCP), the technology focused adviser and investor, notes the announcement on 22 March 2019 by Tax Systems plc (“Tax Systems”) in which it confirmed that the Court made an order sanctioning the scheme of arrangement under Part 26 of the Companies Act (the “Scheme”) in connection with the recommended acquisition by Stripes BidCo Limited of the entire issued and to be issued share capital of Tax Systems at 115 pence per share (the “Offer”). The Scheme will therefore come into effect today, 25 March 2019, and dealings in Tax Systems shares will be suspended as from 7.30 a.m., with admission to trading of Tax Systems shares on AIM being cancelled with effect from 7.00 a.m. tomorrow, 26 March 2019.
The proceeds from the sale of MXC’s Tax Systems shares and warrants under the Scheme (the “Sale”) amount to £24.2 million. This represents a 1.78x return on MXC’s initial investment in Tax Systems in July 2016, a 1.24x return on the further Tax Systems shares MXC purchased in August 2018 and a blended return of 1.62x. Furthermore, MXC has received a £0.3 million fee in relation to the Offer.
The proceeds of the Sale will be used in line with MXC’s stated strategy of investing in technology companies.