Pow­er­house sells Syft stake

Weekend Herald - - MARKETS - Paul McBeth

ASX- li sted tech in­cu­ba­tor Pow­er­house Ven­tures has sold its 1.5 per cent stake in Syft Tech­nolo­gies af­ter de­cid­ing the in­vest­ment was too small to hold much sway with the Christchurch- based gas anal­y­sis firm.

Christchurch- based Pow­er­house sold 929,000 shares for $ 996,900, hav­ing bought the stake for $ 99,000 in 2013, it said in a state­ment to the ASX. That was be­low a $ 1.3 mil­lion val­u­a­tion the stake car­ried on Pow­er­house’s books af­ter re­cent gains in Syft’s share price. How­ever, it re­flected a 76 per cent an­nual in­ter­nal rate of re­turn on the in­vest­ment in the com­pany’s first liq­uid­ity event.

“At this level of hold­ing, Pow­er­house is un­able to ap­ply sig­nif­i­cant in­flu­ence to an in­vestee’s strate­gic di­rec­tion and while we have been de­lighted with Syft’s per­for­mance un­der CEO Doug Hastie’s guid­ance, Pow­er­house will in­stead rein­vest the pro­ceeds over time in new ven­tures,” man­ag­ing di­rec­tor Stephen Hamp­son said.

The Christchurch- based tech­nol­ogy in­cu­ba­tor raised A$ 10.9m in an IPO, short of the A$ 20m it had been seek­ing, and its shares have steadily fallen from A$ 1.07 on its mar­ket de­but on Oc­to­ber 12 to trade at A70c.

Busi­nessDesk receives as­sis­tance from Cal­laghan In­no­va­tion to cover the com­mer­cial­i­sa­tion of in­no­va­tion.

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