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LONDON - Literacy Capital plc (LSE:BOOK) has completed a transaction to sell and reinvest in its portfolio company Velociti Solutions at a 52% premium to its latest carrying value, according to a press release statement issued Monday.
The transaction values Literacy Capital’s stake in Velociti, a software provider to the bus and rail sectors, at £51.4 million after transaction costs, compared to its £33.8 million carrying value reported in the company’s Q1 2025 factsheet.
Velociti was Literacy Capital’s second largest holding, representing 11% of its net asset value as of March 31, 2025. The deal has generated a total return of 14.8 times the original investment with an internal rate of return of 70% for Literacy Capital shareholders.
Private equity firm CBPE has acquired a majority stake in Velociti, with Literacy Capital reinvesting a significant portion of the proceeds to maintain a minority position. Following the transaction, Velociti will remain Literacy Capital’s third largest holding by value.
The company initially acquired EPM Solutions in February 2020 as a platform business, subsequently completing three small acquisitions before rebranding as Velociti last year.
Cash proceeds from the transaction will be used primarily to repay amounts drawn under Literacy Capital’s Revolving Credit Facility. The company stated it intends to return no less than £6 million of capital to shareholders, approximately 10 pence per share, before the end of 2025 using its B Share Scheme.
The publication of Literacy Capital’s Q2 2025 factsheet and updated net asset value has been delayed by 24 hours and will be released Tuesday.
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