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Spark Ventures plc said Wednesday that it is in talks with an unidentified strategic investor about an investment in the publicly traded London-based venture capital group. Spark said it expects an infusion of between £15 million and £20 million ($30 million and $59 million), priced at a "significant premium" to its current share price. However, the VC firm warned that negotiations are at an early stage and that an investment might not be made. Fresh capital would be particularly welcome a month after Spark reported a pretax loss of £10.25 million for the six months ended Sept. 30, a far greater deficit than the £1.86 million loss for the same period the previous year. "The collaboration would exploit the benefits of Spark's management of a broad portfolio of technology and Life Science companies, along with access to intellectual property from leading U.K. academic institutions and combine them with partners who can provide access for those companies to high growth international markets," Spark said in a statement Wednesday. Following the news, shares in Spark were up 1 pence, or 11.3%, to 9.88 pence per share Wednesday afternoon in London, valuing the VC investor at £40.9 million. Andrew Carruthers, a spokesman for Spark, declined to name the potential investor, but did offer a timetable for the negotiations. "We would like to see the process conclude one way or another by the end of the first quarter," Carruthers said. The VC firm, formerly NewMedia Spark, is an early-stage investor, focusing on the information and communication technology, healthcare and life science sectors. Spark typically invests between £500,000 and £2 million in European-based companies. The firm manages about £225 million for institutional investors, including Prudential plc-owned M&G Investment Management Ltd., U.K asset management firm MPC Investors Ltd. and U.K. fund manager New Star Asset Management Ltd. Spark also runs seed funds for the universities of Oxford, Nottingham, Leicester, Loughborough, De Montfort and Nottingham Trent, and quoted venture capital trust Quester VCT plc. In November, Spark was among a group of investors who anted up $12 million in a Series B financing in U.K. in vitro diagnostic company Vivacta Ltd. In October, Spark participated in a $16 million round of funding in information broadcast technology company Skinkers. Collins Stewart Europe Ltd. is advising Spark. Any investment would require shareholder approval.  Deal Video
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