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16 Dec 2009 16:07
16 December 2009
Ludgate Environmental Fund Limited
Investment
Ludgate Environmental Fund Limited ("LEF") announces an investment of €250,000 into Preferred Shares of Emergya Wind Technologies Holdings N.V. ("EWT") at a price of €0.03 per share. LEF's investment is part of a €10.0 million funding round providing support for the continued turnaround and expected growth of EWT in 2010. LEF will maintain its pro rata percentage (approximately 2.5%) ownership of EWT and is participating alongside all major current shareholders.
The Board of LEF believes that there is potential for significant uplift in EWT's value from this level and has noted an improvement in market conditions for EWT's business. The substantial restructuring completed during the second half of 2009 under the new management team positions EWT to take advantage of the increasing worldwide governmental and regulatory support for wind energies.
Following the funding round completed on 15 December 2009 and LEF's investment, the carrying value of EWT has decreased to €0.03 per share, resulting in a write down of £1.7 million to £0.4 million. The impact on LEF's Net Asset Value is a decrease of approximately 4.2 pence per LEF share. The NAV per share at 30 September 2009 was 107.0 pence per share.
In addition to the funding round, EWT is proposing to raise a further €2.0 million (in which LEF will not participate ) as a convertible loan into a project finance investment vehicle, wholly owned by EWT, to provide financing for wind projects. The total financing of €12.0 million was led by a major shareholder and as a condition of the investment, investors have been provided additional oversight and control of the Company.
The Board of LEF believes that there are no other significant changes to LEF's NAV.
About Emergya Wind Technologies:
EWT is a Dutch-based manufacturer and supplier of wind turbines and turnkey wind parks which specialises in the development and manufacture of advanced direct-drive (gearless) wind turbines. EWT was established in 2004 by the acquisition of the intellectual property of Dutch wind turbines manufacturer Lagerwey. The current product portfolio consists of the 750 KW and 900 KW series and EWT is also developing larger wind turbines for onshore applications.
About Ludgate Environmental Fund:
Ludgate Environmental Fund Limited ("LEF" or "the Fund") is a Jersey domiciled closed ended investment company listed on AIM in August 2007. LEF has total net assets of approximately £50 million.
As an active manager, LEF invests in growing environmental/cleantech companies. There is strong stimulus to growth in this sector from: increasing strains on natural resources; rising concerns over waste and pollution; increasing public support; and maturing environmental technologies. Focus sectors of the Fund include alternative energy; waste management and resource recovery; energy efficiency; water management; industrial process advances and emission reduction technologies.
Website: www.ludgateenvironmental.com
Ludgate Environmental Fund Limited:
Chairman, John Shakeshaft
+44 (0) 7771 976 278
Ludgate Investments Limited:
Nick Pople
+44 (0)20 7621 5770
NOMAD - PricewaterhouseCoopers LLP:
Melville Trimble
+44 (0)20 7213 8898
Broker - Matrix Corporate Capital LLP:
Paul Fincham
+44 (0)20 3206 7175
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