East Capital Explorer AB - East Capital Explorer invests EUR 3.7m in Georgian food retailer Populi
(Thomson Reuters ONE) -
East Capital Explorer AB has agreed to invest EUR 3.7m in the privately held
Georgian food retail chain Populi.
Gert Tiivas, CEO East Capital Explorer says: "We have communicated our goal to
make more direct investments. Populi provides a promising opportunity to profit
from the recovery of the Georgian economy and the long-term development of the
consumer market within the region."
The Georgian food retail sector is highly fragmented, most of the market is held
by small independent retailers. Populi is the largest food retailer in Georgia
with 43 stores, yet it holds a relatively small share of the market. It was
established in 2005, and enjoyed fast growth until 2008. 2009 was a crisis year
for Georgia, which suffered from the consequences of the war with Russia and the
global financial crisis. Part of the strategy of the company is to grow the
number of stores.
The EUR 3.7m investment by East Capital Explorer is made initially through a
bridge loan which upon completion of a share capital increase will be converted
into a mix of shares and share options. Following the investment, East Capital
Explorer will own 22% of the company's share capital and receive a seat on the
company's board of directors. If East Capital Explorer exercises the option, its
share in the company is expected to increase to approx 29% in one year.
Furthermore, the company and its shareholders have the right to buy back the
shares and the option in one year at a guaranteed return for East Capital
Explorer.
East Capital Bering Central Asia Fund, of which East Capital Explorer owned 40%
as of the end of the second quarter, is one of the largest shareholders of the
company holding 24% prior to the transaction. In order to avoid any potential
conflicts of interest the investment decision was taken by the independent board
members of East Capital Explorer.
Contact information:
Gert Tiivas, CEO East Capital Explorer +46 8 505 977 30
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#1447513]
Press release 100929:
http://hugin.info/143006/R/1447513/390099.pdf
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Thomson Reuters clients. The owner of this announcement warrants that:
(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: 29.09.2010 - 07:01 Uhr
Sprache: Deutsch
News-ID 43174
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