20 Oct 2008 10:05
For immediate release: 20 October 2008
London Asia Chinese Private Equity Fund Limited
('LACPEF' or 'the Company')
Disposal of Holding in Asia Wind
LACPEF (AIM: LCP), the China focused investment company, announces that it has sold its entire 11.11% holding in Asia Wind Group Limited ('Asia Wind') for a cash consideration of £2.0 million. The Company originally acquired the holding in November 2006 for £3.0 million.
Simon Littlewood, Director of LACPEF, said: "We have spoken recently with the majority of our shareholders and share their concerns about the large discount to published net assets per share at which the Company's shares are trading. We believe that accelerating the realisation of certain of the Company's investments should help reduce the discount. Because of its heavy reliance on debt for financing its projects, Asia Wind's business model has been severely affected by the credit crisis, which has forced it to postpone its plans until there is more stability in financial markets. With no expectation of being able to profit from our investment in Asia Wind in the short term until financial markets stabilise, and in the light of the discount at which the Company's shares currently trade, the Board has decided to dispose of the holding now at a loss, rather than wait for Asia Wind to be able to exploit its business model over the long-term, thereby freeing up some cash for other purposes."
For further information, please visit www.lacpefund.com, or contact:
| Andrew Dunn / John West Tavistock Communications Tel: 020 7920 3150 | Simon Littlewood London Asia Chinese Private Equity Fund Tel: +852 2251 8373 | Hugh Field Collins Stewart Europe Tel: 020 7523 8000 |