Trinity Capital Regulatory News (TRC)

1 Apr 2008 11:18

Trikona Trinity Capital PLC01 April 2008 Trikona Trinity Capital PLC ("Trikona TC" or "the Company") Trikona TC extends its partnership with SachsenFonds GmbH Trikona Trinity Capital PLC (AIM: TRC), a fund created for investing in Indianreal estate and infrastructure, and managed by Trikona Capital, extends itsstrategic partnership with SachsenFonds Holdings GmbH ("SF"), a leading Germanfund manager with €4.7 billion of assets under management, by signing aMemorandum of Understanding (MoU) with a transaction value worth approximately£80 million. Under the terms of the MoU, SF will acquire certain assets fromTrikona TC and co-invest in new projects. In December 2007, Trikona TC laid the foundation for this strategic partnershipwhen it divested part of its asset portfolio to SF for an aggregate sale priceof £32 million for a cash-on-cash return of 108%, excluding fees and transactioncosts. The previous sale, plus the current MoU and SF's agreement in principleto undertake a third transaction later in the year will bring the aggregateinvestment by SF to over £160 million. In accordance with the terms of the MoU, Trikona TC would further divest part ofits equity share holdings in several of its off-shore entities that own Indianresidential and commercial projects for an aggregate sale price of £63 million.Additionally, SF would invest £17 million alongside Trikona TC to begindevelopment of new real-estate projects. Tentatively scheduled to close by 30April 2008, the divestments are expected to yield returns for Trikona TCcomparable to those realised in the first transaction with SF, while providingSF its targeted return. Trikona TC is committed to creating shareholders' value through investing atearly stage, building companies and projects and strategically converting thoseinvestments into cash which in turn can be redeployed in higher returninvestments. Aashish Kalra, Managing Director of Trikona Capital, said: "We have consistentlydelivered on our business plan and continue to make money for our investors as aresult of our execution capabilities. Despite challenging market conditions, thegains for our shareholders help build positive momentum within the fund. Thisagreement demonstrates our ability to create valuable long-term partnershipsresilient to adverse market conditions, and should serve as a model for futureTrikona TC partnerships." - ENDS - Enquiries: Trikona Trinity Capital PLC managed by Trikona Capital Limited Aashish Kalra, Managing Director +91 11 4659 6000Ashesh C. Shah, Global Head of Corporate Development +44 207 870 3454 Bell Pottinger Corporate & Financial +44 20 7861 3232 Nick LambertAmy Rajendran Gutenberg Communications Michael Sherrill (New York) +1 212 239 8741Pranav Kumar (New Delhi) +91 981 0077898 Numis Securities +44 207 2601000 Jag MundiCharles Farquhar Notes: For further information and regular updates regarding the Fund'sactivities, please log on and sign up for news alerts at www.trikonatrinityplc.com Notes to Editors The agreement is still subject to certain conditions which the Companyanticipates will be fulfilled by 30 April 2008. This information is provided by RNS The company news service from the London Stock Exchange