Last checked at 10 Aug 2012 07:00
CITY OF LONDON INVESTMENT GROUP PLC
("City of London")
Letter to the Directors of EnergyO Solutions Russia AB
City of London (LSE:CLIG), a leading emerging markets asset management group, announces today that it has sent the following letter to the Directors of EnergyO Solutions Russia AB (First North, Stockholm: EOS).
"Dear Directors,
EnergyO Solutions Russia AB ("EOS" or "the Company")
City of London Investment Management (CoLIM) currently holds on behalf of institutional clients 9.8 million shares (17.2%) in EOS.
We have noted the convening notice for an extraordinary general meeting on Wednesday 22nd August 2012 and we confirm that we will oppose both the synthetic share buyback and the proposed changes in the Company's corporate governance structure.
Since its listing in 2007, the EOS share price has declined over 80%, the net asset value per share has declined by approximately 75% and shareholders have not received any dividends. In CoLIM's opinion, EOS should not enter into a four year management advisory agreement with the management team that has overseen this failure. The timing is particularly inappropriate ahead of the 2013 AGM, when EOS shareholders shall determine whether the Company should continue its operations.
The proposed synthetic buyback is an inadequate response to the current situation because it offers shareholders an opaque and uncertain exit at a discount to the underlying value of their assets in the Company. We are considering our own proposal. In the meantime we urge you to postpone the EGM and to bring forward proposals at the earliest opportunity that will permit shareholders to realise their investment at net asset value."
For further information please contact:
Simon Westlake, Executive
City of London Investment Group
Tel: +44 (0) 20 7711 1552
Simon Hudson / Andrew Dunn
Tavistock Communications
Tel: +44 (0) 20 7920 3150
Notes for Editors:
City of London Investment Management is an established asset management group which has built its reputation by specialising in Emerging Market closed end fund investment since 1991. CLIM manages US$4.5 billion (as at 31st May 2012) on behalf of clients, who are leading institutional investors from around the world, though most are based in the US and UK. Its investment philosophy is to invest in assets both that offer attractive growth prospects and are also good value. CLIM takes a long term view: patience and constructive engagement are vital elements of its investment approach. CLIM is the principal subsidiary of City of London Investment Group which is listed on the London Stock Exchange.
EnergyO Solutions Russia AB is an investment company that invests in Russian electricity assets. EOS Russia is listed on First North, a marketplace operated by the Stockholm Stock Exchange.