East Capital Explorer AB - East Capital Explorer invests EUR 35m in East Capital Special Opportunities Fund II
(Thomson Reuters ONE) -
* East Capital Explorer has determined to invest EUR 35m (corresponding to
approximately SEK 325m) in the new East Capital Special Opportunities Fund
II
* The Fund targets investment opportunities that, due to market or
owner-specific reasons, can be acquired at valuations which are lower than
suggested by the companies' fundamentals. In addition, the Fund will also
invest in distressed situations, and through directed rights issues, when
the risk reward ratio for such investments is favorable
* The Fund is mandated to invest in Russia and Eastern Europe
Gert Tiivas, CEO East Capital Explorer states: "While economic recovery is
underway in the majority of the countries in our investment region, there are
still great undervalued investment cases out there, special opportunities that
we want to pursue through this fund."
Peter Elam Håkansson, Chairman and Head of Portfolio Management at East Capital
says, "Continued market volatility and scarcity of capital are playing into our
hands, enabling us to make investments similar to those undertaken immediately
following the 2008 crisis. Our local presence and our on the ground analysis
will enable us to act promptly, across markets and sectors, and to capitalise
upon these opportunities before market conditions normalise."
The Fund will target investments in companies with a positive outlook for future
operations, but which, due to market or owner-specific reasons, can be acquired
at valuations which are lower than suggested by the companies' fundamentals. In
addition, the Fund will also invest in distressed situations, and through
directed rights issues, when the risk reward ratio for such investments is
favorable. The Fund will invest in Russia and Eastern Europe.
Investment opportunities will typically be sourced outside the ordinary market
environment, hence, leveraging East Capital's experience and local networks. The
Fund will target investments with clear triggers for revaluation and with exit
opportunities within a four-year period. When appropriate, East Capital will
assume an active role in companies through board representation, or other means.
The Fund's investment focus will be on listed, or otherwise traded, equities,
but other financial instruments may also be utilized if deemed appropriate. All
proceeds on divestments after three years will be distributed to investors.
East Capital Explorer AB has determined to invest EUR 35m in the Fund upon its
expected launch during the fourth quarter of 2010.
East Capital will also open the Fund to other institutional and qualified
investors, and the maximum Fund size is limited to EUR 100m. The Fund term is
expected to be four years.
There is no subscription fee on East Capital Explorer's investment in the Fund.
Other terms are an annual management fee of 2 percent of the subscribed capital
of the Fund and a 20 percent profit share on realized gains, above a hurdle rate
of 7 percent, payable to the investment manager at exit of the investments.
Following this investment, cash, cash equivalents and other short-term
investments in East Capital Explorer total EUR 58m (approximately SEK 540m), of
which EUR 53m (approximately SEK 490m) are available for new investments.
Contact information:
Gert Tiivas, CEO East Capital Explorer +46 8 505 977 30
Mathias Pedersen, CFO East Capital Explorer +46 8 505 977 48
Financial reporting calendar - East Capital Explorer:
· Monthly Net Asset Value report on the fifth working day after the end of
each month
· Interim Report 1 January - 31 September 2010, 11 November 2010
· Year-end Report 2010, 16 February 2011
About East Capital Explorer ? East Capital Explorer AB is a Swedish company,
created with the specific aim of bringing unique investment opportunities in
Eastern Europe to a broader investor base. The company invests mainly in East
Capital's private equity and semi-public equity funds that provide exposure to
companies not otherwise accessible via the local stock exchanges in Eastern
Europe. East Capital Explorer targets fast growing sectors such as the power
utilities, financial, retail and consumer goods and real estate sectors. East
Capital Explorer has appointed East Capital to manage its investment activities.
Since 9 November 2007, East Capital Explorer is listed on NASDAQ OMX Stockholm,
Mid Cap.
This information is disclosed in accordance with the Securities Markets Act, the
Financial Instruments Trading Act or demands made in the exchange rules.
[HUG#1443947]
100913 - Press release:
http://hugin.info/143006/R/1443947/387833.pdf
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: East Capital Explorer AB via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 13.09.2010 - 08:31 Uhr
Sprache: Deutsch
News-ID 42213
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