ERE Eredene Cap.

TIDMERE

RNS Number : 5392N

Eredene Capital PLC

29 July 2014

29 July 2014

Eredene Capital PLC ("Eredene")

(a closed ended investment company in infrastructure projects in India, registered in England and Wales with company number 5330839)

Partial divestment of stake in Sattva CFS & Logistics Pvt Limited

-- Eredene Capital PLC ("Eredene") today announces the receipt of GBP1.9m in cash for the sale of a 23% stake in Sattva CFS & Logistics Pvt Limited (the "Company"), a leading player in container logistics in Chennai, South East India

   --    This represents a 4.6x return on the initial investment and an IRR of 24.5% 

-- This follows on from the receipt of GBP1.1m from an earlier sale of a 10% stake in the Company announced in January 2012

   --    Both sales have been to the Sattva Business Group which now owns 74% of the Company 
   --    The sale reduces Eredene's stake in the Company to 16% 

As a part of the on-going strategy to realise assets and return capital to shareholders, Eredene Capital PLC, the AIM quoted investor in Indian infrastructure, today announces the receipt of GBP1.9m for the sale of its 23% stake in the Company, through its subsidiary Ennore Mauritius Limited, to Sattva Hi-tech and Conware Private Limited, part of the Sattva Business Group.

Sattva CFS, located in Vichoor and servicing the busy port of Chennai, was Eredene's first investment in the sector in 2007. The business has been developed from a greenfield site to become dividend paying within two years. Its latest results for the year to 31 March 2014 showed pre-tax profits of GBP1.2m.

The GBP1.9m sale proceeds will be retained until further significant asset realisations have been achieved when another return of capital to the shareholders will be considered.

The carrying value of Eredene's 23% stake in the Company was GBP2.24m being the proportionate fair value of Eredene's investment in Sattva CFS & Logistics as at 30 September 2013 as disclosed in the Interim Results announced in December 2013. The directors value the remaining 16% stake at a fair value of GBP1.25m. The fair value of the entire investment portfolio as at 31 March 2014 will be provided upon the release of Eredene's Annual Results which is expected by mid-August 2014.

Enquiries:

Ocean Dial Asset Management Limited (Investment Manager & Administrator)

David Cornell

Robin Sellers

Tel: +44 20 7802 8900

Grant Thornton UK LLP(NOMAD)

Philip Secrett

Jen Clarke

Tel: +44 20 7383 5100

Numis Securities Limited(Broker)

David Benda

Hugh Jonathan

Tel: +44 20 7260 1000

This information is provided by RNS

The company news service from the London Stock Exchange

END

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