Reconstruction Capital II Ltd New Valuations of Private Equity Positions (7274H)

TIDMRC2

RNS Number : 7274H

Reconstruction Capital II Ltd

24 June 2013

Reconstruction Capital II Limited

("RC2" or the "Company")

New Valuations of Private Equity Positions

As previously announced, due to a deterioration in the operating performance of East Point Holdings Limited ("EPH" or the "Group"), RC2's 63%-owned affiliate, over the first quarter of 2013, the Directors had requested a new independent valuation of this investment, which takes into account the recent trading performance in light of the overall financial condition of the Group. The new independent valuation has now been completed and results in a valuation of the Company's investment in EPH at EUR5.3m, and a valuation of EUR1.3m for the Company's direct equity investment in Klas d.o.o. ("Klas"), EPH's bakery business. Furthermore, as part of the annual audit process, RC2's auditors have requested revised valuations of the investments in Policolor S.A. ("Policolor") and Mamaia Resort Hotels Srl ("Mamaia").

A table with the current and revised valuations of the main private equity positions is shown below:

 
                     Current           Revised 
                  valuations        valuations 
                         EUR               EUR 
 EPH              19,281,150         5,292,000 
 Klas             1,372,714          1,290,000 
 Policolor        23,360,000       19,360,000 
 Mamaia         4,140,000            2,780,000 
             ---------------  ---------------- 
 Total          48,153,864       28,722,000 
             ---------------  ----------------

The new valuations will be included in the May 2013 NAV calculation as well as the 31 December 2012 annual report.

For further information, please contact:

Reconstruction Capital II Limited

Ion Florescu / Anca Moraru

Tel: +44 (0) 207 244 0088/ +40 21 3167680

Grant Thornton UK LLP (Nominated Adviser)

Philip Secrett / David Hignell

Tel: +44 (0) 20 7383 5100

LCF Edmond de Rothschild Securities (Broker)

Hiroshi Funaki

Tel: +44 (0) 20 7845 5960

This information is provided by RNS