The Bailador Technology Investments Ltd (ASX: BTI) share price increased by 6.7% after making an announcement about SiteMinder.
Bailador is an investor in technology businesses in their early growth stage before they list on an stock exchange.
One of its main investments called SiteMinder – a hotel booking platform – has entered into a definitive agreement to raise capital from new institutional investors.
Bailador's policy is to revalue its investments to match third party transactions . The deal will mean a 27% uplift of Bailador's carrying value of SiteMinder from $72.9 million to $92.4 million.
Bailador also has the opportunity for a partial cash realisation at the same value as the new shares issued. If Bailador does decide to sell some shares it will be only be a minority of Bailador's holding.
SiteMinder will remain comfortably the largest holding in the Bailador portfolio because management still have a strong belief and commitment to the future growth of SiteMinder.
It will boost Bailador's pre-tax net tangible assets (NTA) per share by 16.3 cents which will be reflected in the December monthly update to be released next month.
