KUBC.L Regulatory News (KUBC)

21 Dec 2007 07:07

Kubera Cross-Border Fund Limited21 December 2007 21 December 2007 Kubera Cross-Border Fund Limited KUBC invests up to US$21 million in a leading manufacturer of specialized automotive components Kubera Cross-Border Fund Limited ("KUBC") (LSE: KUBC), an investment companytraded on the AIM market of the London Stock Exchange, is pleased to announcethat it has acquired a significant interest in a leading manufacturer ofspecialized automotive components (the "Company") for an equity investment of upto US$21 million (including the pro rata investment by affiliates of KuberaPartners, LLC, the Investment Manager of KUBC). The consideration for theinvestment will be satisfied in cash. The first tranche of the KUBC investmenthas closed, and further details about the Company and the transaction will beprovided upon the closing of the second tranche of the investment, which isexpected to take place in January. The Company is India's first global scale manufacturer for original equipmentmanufacturers ("OEMs") across the world in this particular area of automotivecomponents. While India-based auto component manufacturers have shown stronggrowth and profitability in recent years, Kubera Partners is particularlyenthused about this investment because the company operates at the very high endof skill and knowledge-based manufacturing within the auto component sector. The Company is well positioned to become a dominant player in this market. Ithas established world class quality, manufacturing, and delivery capabilitiescertified by leading OEMs. It offers complete concept to production capabilitywith integrated casting, polishing and plating facilities to its marquee clientbase. The Company's network of design, engineering, sourcing, warehousing,logistics and sales and service offices spanning three continents enables it todeliver the benefits of global sourcing and next-door service to its customers. Ramanan Raghavendran, managing partner of Kubera Partners, said: "We have soughta business in this sector that provides unique skills-based manufacturing, andis differentiated from more generic components manufacturers. We look forwardto working closely with the Company's team in strengthening their balance sheetand expanding their manufacturing operation to meet increased demand." At final closing, KUBC will own approximately 58% of the Company by way of botha primary investment and a secondary purchase of shares from formershareholders. The Company reported EBITDA of US$ 4.2 million, for the financialyear ended 31 March 2007. While the majority of the Company's revenues comefrom US and European customers, it also has a substantial domestic Indianbusiness that has been growing rapidly. The Company has been growing at anapproximate 100% compound annual growth rate ("CAGR") over the last 2 years andis expected to grow at over 40% CAGR over the next 2-3 years. KUBC obtainedattractive valuation terms, along with standard economic and governance rights. Kubera Partners, as the investment manager of KUBC, invests in cross-bordercompanies that are Western headquartered and seek to leverage India and Asiabased resources for availability of talent or access to new markets; andcompanies headquartered in India and Asia that seek to expand in Western marketsthrough acquisition or sales force development. Kubera Partners isdifferentiated by the track record of its principals and their complementaryexperiences. On behalf of KUBC, Kubera Partners aims to invest between US$20 million andUS$40 million per investment but can make significantly larger investments whereappropriate. Further details on the investment manager can be found atwww.kuberapartners.com. For more information contact: Kubera Partners, LLC (Investment Manager of Kubera Cross-Border Fund Limited)Ramanan Raghavendran, Managing Partner Tel no: +1 (212) 295 2400 LCF Edmond de Rothschild Securities Limited (Broker)Hiroshi Funaki Tel no: +44 (0) 20 7845 5968 Grant Thornton Corporate Finance (Nominated Adviser)Philip Secrett, Partner Tel no: +44 (0) 20 7383 5100 This information is provided by RNS The company news service from the London Stock Exchange