Craven House Capital Regulatory News (CRV)

24 September 2012

CRAVEN HOUSE CAPITAL PLC

("Craven House" or the "Company")

Acquisition of 49% shareholding in "Ceniako Limited"

The Company today announces that it has agreed to purchase 490 shares in Ceniako Limited ("Ceniako"), representing 49% of Ceniako's total issued share capital, from the owner of Ceniako. The shares are being purchased at a price of approximately €2,040 per share, amounting to a total consideration of €1,000,000. As has been the case in previous transactions, this purchase of shares is conditional upon the owner of Ceniako subscribing for 62,891,520 new ordinary shares of 0.1 pence each in the Company ("Ordinary Shares") for 1.25p per share, raising funds for the Company of circa €1,000,000.

Ceniako is a Cypriot holding company, whose sole asset, held indirectly through a 100% owned Brazilian subsidiary, is 1,967 hectares of productive agricultural land with significant development potential. Situated directly on the Atlantic coast of Brazil, between Salvador and Rio de Janeiro, the property features over two kilometres of beachfront in addition to productive cattle pastures and cropland. 

Mark Pajak, Acting Chairman, commented, "We are very pleased and excited to announce Craven House's first investment in Brazil.

The property owned by Ceniako benefits from over 2km of stunning Atlantic beach-front, as well as almost 5,000 acres of fertile pastures. Ceniako's intentions are to make full use of the land's potential for agricultural uses, such as cattle grazing, whilst continuing to advance the development potential of the property.

As an agricultural asset, it is forecast that healthy cash flows will be generated, whilst the opportunity for further development represents the potential for significant appreciation over time. Given our concerns about the global economy in the short term, we are delighted to have exposure to an asset that generates a current return in a stable jurisdiction. We determined our purchase price via an arms length valuation based on agricultural use. We are comfortable waiting until the appropriate time to develop the land or sell it at a significant premium to our acquisition price. There are not many places left in the world where ocean front land can be acquired at agricultural prices.

This transaction provides our shareholders with multiple benefits. It increases the net asset value per share, adds to earnings and gains exposure to both rising agricultural commodities and the Brazilian economy. Once again we have demonstrated the ability to secure excellent assets while continuing to value Craven House shares at a premium to the market price - a clearly defined and central aspect of our investment strategy. Utilizing this strategy, the net asset value per share continues to rise with each transaction.

This and all other recent transactions have valued the Company's shares at 1.25p per share. We were able to achieve this because Craven House is recognised as a value added shareholder and partner that not only supplies capital but also leverages its expertise and relationships in the markets within which it operates."

Application will be made to the London Stock Exchange for the new Ordinary Shares to be admitted to trading on AIM. Admission is expected to take place on 28 September 2012. The shares will rank pari passu with the existing issued ordinary shares.

Following the issue of the new ordinary shares, the Company's total issued share capital will consist of 498,036,741 ordinary shares with each share carrying the right to one vote. The Company has no ordinary shares held in treasury. The total of 498,036,741 ordinary shares may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

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