2M to close UK and US offices

2M Invest is to close its London and Boston offices in a move to cut costs following poor 2001 results.

Scandinavian venture capital firm 2M Invest has announced plans to restructure the company in the light of results for 2001 which saw the firm make write downs in excess of E45m. As part of the restructuring, 2M Invest’s offices in London and Boston will be closed.

The company announced to the Danish Stock Exchange on March 20 that it will seek approval from shareholders for the issue of 18 million new shares worth E25m at the firm’s forthcoming AGM on April 22. The closure of the London and Boston offices, in addition to a number of job losses, will contribute to the firm’s aim to reduce costs by E5.4m.

The firm, which specialises in technology and IT financing, has suffered from a lack of liquidity in its investments, brought about by a sharp downturn in the technology sector. In addition to the E340m write downs, the firm announced losses of E10m attributable to realised and unrealised capital losses on securities.

The company also plans to name a new member of the management board who will focus on internal management. The company hopes to improve internal reporting in order to allow the firm to speed up the process of identifying potential problems in the portfolio.