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Literacy Capital PLC on Monday said it has completed the sale and partial reinvestment of its stake in Velociti Solutions Ltd at a 52% premium to its most recent valuation, and intends to return no less than £6 million to shareholders before year-end. The London-based investment trust makes long-term investments in private UK businesses and donates to literacy and education charities. Velociti, a software provider to the UK and international bus and rail sectors, was previously Literacy Capital’s second-largest holding, accounting for 11% of net asset value as of March 31. The transaction, which involves CBPE Capital LLP’s new £714 million fund, values Literacy’s stake in Velociti at £51.4 million, up from the holding’s carrying value in Literacy’s most recent accounts of £33.8 million. The sale generated a total return of 14.8 times money-on-money, Literacy said, and a 70% internal rate of return for shareholders. A ‘significant proportion’ of the proceeds will be re-invested alongside CBPE, with Velociti remaining one of Literacy’s top three holdings. The company said it will use the cash received to repay its revolving credit facility. It also expects further inflows from refinancing activity in two other portfolio companies before the end of the third quarter. As a result, Literacy said it intends to return no less than £6 million of capital to shareholders by the end of 2025 via its B share scheme, worth about 10 pence per share. Shares in Literacy Capital were 3.2% higher at 450.00 pence in London on Monday morning. Velociti was formed from Literacy’s 2020 acquisition of EPM Solutions, followed by three bolt-on deals, and was rebranded last year. The company is now backed by CBPE, with Literacy retaining a ‘significant minority stake’ and future upside. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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