Reconstruction Capital II Ltd New Valuations of Private Equity Positions (2791C)

TIDMRC2

RNS Number : 2791C

Reconstruction Capital II Ltd

13 March 2014

Reconstruction Capital II Limited

("RC2" or the "Company")

New Valuations of Private Equity Positions

As previously announced, due to a recent severe deterioration in the financial condition of East Point Holdings Limited ("EPH"), the Directors have decided to write down the Company's equity investment in EPH, as well as the Company's loan to its Copper processing subsidiary, to zero, compared to a total valuation of EUR6.7 million for both these positions in the November 2013 NAV calculation. This is being reflected in the Company's December 2013 NAV calculation.

Furthermore, as part of the annual audit process, RC2's auditors have requested from independent third party valuers new valuations of the Company's investments in Policolor S.A., Top Factoring Group, Mamaia Hotel Resorts Srl and Klas d.o.o as at 31(st) December 2013. A table showing the new and prior valuations of the main private equity positions is shown below:

 
 
                             Current       Revised 
                          valuations    valuations 
                                 EUR           EUR 
 
 Policolor S.A.           19,360,000    19,760,000 
 Top Factoring Group       8,364,401     8,959,408 
 Mamaia Hotel Resorts 
  Srl                      2,780,000     2,819,929 
 Klas d.o.o                1,290,000       677,100 
 EPH                       5,292,000             0 
                                      ------------ 
 Total                    37,086,401    32,216,437

Net Asset Value

The Company announces that at close of business on 31 December 2013 its unaudited net asset value ("NAV") per share was EUR0.3282, which reflects the changes to the valuations of the private equity positions outlined above.

Quarterly report

A quarterly report which details the activities of the Company for the quarter ended 31 December 2013 will be issued shortly by the investment manager and investment advisers of the Company.

Copies of the report will be emailed to shareholders and will also be available, free of charge from the offices of New Europe Capital Limited, 33 Marloes Road, London W8 6LG, United Kingdom (tel: +44 (20) 7244 0088), for a period of 30 days from the date of this announcement.

The report will also be available on the Company's website: http://www.reconstructioncapital2.com/

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

This information is provided by RNS

The company news service from the London Stock Exchange

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