LONDON - Molten Ventures (LSE: GROW, Euronext (EPA:ENX) Dublin: GRW), a prominent venture capital firm, announced today that it has agreed to sell its stake in Freetrade to IG Group (LSE: IGG), a FTSE 250 entity. The transaction, pending regulatory approval, is expected to finalize by mid-2025, with Molten's stake valued at a 30% premium over its September 30, 2024 holding value of £17 million, yielding a 1.6x return on invested capital.
The deal is part of a larger success narrative for Molten Ventures, having exceeded its original financial year guidance with over £150 million in realisations, averaging a 2.5x return on invested capital. This performance underscores the firm's robust valuation process and investment strategy.
In alignment with its capital allocation policy, Molten Ventures also declared the initiation of a £5 million share repurchase programme. This move reflects the firm's commitment to maximizing shareholder returns, particularly in light of the current discounted share prices.
Ben Wilkinson, CEO of Molten Ventures, expressed confidence in the firm's investment and portfolio management approach, highlighting the Freetrade exit as a testament to their strategy. The additional capital from this exit will bolster the firm's investment capabilities and share buyback efforts.
This news is based on a press release statement from Molten Ventures and has not been independently verified.
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