8 Jul 2008 17:12
CORRECTION TO PROPOSED AUTHORITY TO MAKE MARKET PURCHASES
The notice of EGM announcement released at 4:11pm today stated an incorrect date for the Extraordinary General Meeting. The correct date is 31 July 2008. The corrected announcement follows below.
The Directors consider that it would be in the interests of all Shareholders for the Company to have the right to purchase its own Ordinary Shares in the Market. The Company is therefore posting a circular to shareholders today convening an Extraordinary General Meeting to be held on 31 July 2008 to propose an authority for the Company to purchase up to 5,693,149 Ordinary Shares, representing 4% per cent. of the 142,328,716 Ordinary Shares in issue at today's date. It is the intention of the Board that, on purchase of any shares under this authority, such shares would be cancelled as required by Isle of Man law and would not be held as treasury shares.
This authority is aimed at maximising shareholder value in the longer term by taking advantage of the current market environment where the Company's shares are traded at a significant discount to its Net Asset Value. The Company has no leverage in its balance sheet and has a strong cash position which will allow it to fund all of its existing commitments and operating expenditures over the longer term.
The Directors will only exercise the power to make market purchases of Ordinary Shares if they believe that it is in the best interests of Shareholders generally and that it will enhance the net asset value per share and/or the earnings per share of the Company.
The terms of this authority are that the Company will be required to pay a minimum (exclusive of expenses) of not less than 1p for each share and a maximum of not more than 105 per cent of the average middle market price of an Ordinary Share for the five business days immediately preceding any such purchase.
Purchases would be financed from the Company's cash generated income and made out of its distributable profit. As at 31 December 2007, the Company's distributable profit was USD 53.1 million.
Enquiries
For further information, please contact:
Dragon Ukrainian Properties & Development Plc (www.dragon-upd.com)
Tomas Fiala
+380 44 490 7120
Dragon Capital Partners Limited
Chris Kamtsios: +380 44 490 7120
KBC Peel Hunt
Capel Irwin: + 44 20 7418 8900
Alina Savych
Notes to Editors
About Dragon- Ukrainian Properties & Development Plc
DUPD is an Isle of Man incorporated company formed to invest in the development of new commercial properties and re-development of existing properties in Ukraine which offer the prospect of attractive returns to its shareholders. Having raised US$ 208 million at US$2 per share, DUPD's ordinary shares were admitted to trading on the AIM market of the London Stock Exchange on 1 June 2007. In November 2008, DUPD successfully raised another US$ 100 million in a secondary private placing largely funded by its existing shareholders.
About Dragon Capital Partners
DCP is a subsidiary of Dragon Asset Management, the asset management arm of Dragon Capital. Dragon Capital is a leading Ukrainian financial institution specialising in the provision of investment banking, securities trading, asset management and private equity services. Dragon Capital has received the "Best Equities House in Ukraine" award in 2002, 2004, 2005, 2006 and 2007 by "Euromoney", a leading financial journal. DCP professionals combine extensive local knowledge and expertise gained through substantial investment activity in the Ukrainian private equity market across a wide spectrum of industries, including real estate.