Trinity Capital Regulatory News (TRC)

30 Jan 2008 09:41

Trikona Trinity Capital PLC30 January 2008 30 January 2008 Trikona Trinity Capital PLC ("Trikona TC" or "the Company") Proposed £18.26 million Cash Disposal of Dynamix Balwas Hospitality Private Limited 74 per cent IRR for Trikona TC The Board of Trikona Trinity Capital PLC (AIM: TRC), a fund created forinvesting in real estate and real estate related entities across India, hasreceived an offer for the acquisition of Dynamix Balwas Hospitality PrivateLimited ("DBH") by Trikona Hospitality Vertical ("THV"). The Company has a 9.5per cent holding in DBH. The DBH business comprises a private developmentcompany, owning an operational 5-star hotel in Mumbai as well as land to developfurther hotels in Mumbai, Pune and Goa. THV is a wholly owned subsidiary of Trikona Capital Limited, a company set up tocapitalise on the hospitality sector in India. THV has proposed the 100 percent acquisition of DBH (Development Project 6) for a cash consideration of£18.26 million, which represents a 10 per cent premium to the £16.6 millionvaluation stated in the Interim Results for the six months ended 30 September2007 (the "Proposed Transaction"). The Proposed Transaction will yield an IRR of74 per cent on the invested capital. As the Proposed Transaction will involve a sale to a wholly owned subsidiary ofTrikona Capital Limited and as Rak Chugh is a Director of the Company and ofTrikona Capital Limited (the Company's investment manager), under the AIM Rules,Trikona Capital Limited may be a related party for the purposes of the ProposedTransaction. Therefore, the Board will need to consider, having consulted withits nominated adviser, Numis Securities ("Numis"), that the terms of theProposed Transaction are fair and reasonable insofar as the shareholders of theCompany are concerned. The Board intends to use the proceeds of the Proposed Transaction to invest in further projects in line with its investment strategy. The Proposed Transaction is conditional upon the successful completion of aprivate placement in THV and/or the listing of THV units on an internationalstock exchange. As stated above, it is also conditional upon, inter alia, theBoard being satisfied that the terms of the Proposed Transaction are fair andreasonable insofar as the shareholders of the Company are concerned, and as wellas consulting with Numis, the Board will be obtaining an independent valuationfrom CB Richard Ellis. Michael Cassidy CBE, Chairman of Trinity Trikona Capital PLC commented: "Thetransaction would represent further evidence that Trikona Trinity Capital givesinvestors real and visible upside to growth sectors in India and that theCompany remains focused on creating exits to crystallise shareholder returns. Wehave agreed the offer in principle and, subject to due diligence, an independentvaluation and the Board being satisfied that the terms of the ProposedTransaction are fair and reasonable, we look forward to its successfulcompletion." Enquiries: Trikona Trinity Capital PLC managed by Trikona Capital LimitedAashish 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 3232Nick LambertAmy Rajendran Gutenberg CommunicationsMichael Sherrill (New York) +1 212 239 8741Pranav Kumar (New Delhi) +91 98100 77898 Numis Securities +44 20 7260 1000Jag MundiCharles Farquhar Notes to Editors About Trikona Trinity Capital PLC: Trikona Trinity Capital PLC (AIM: TRC) joined the Alternative Investment Market(AIM) in 2006 and is a fund that is focused on investing in real estate and realestate related entities across India. Investments will typically be structuredas special purpose vehicles or joint ventures, and investments in equity, with atarget size of between £5m and £30m per transaction. Trikona TC holds a diverseportfolio of projects ranging across seven asset classes and became fullyinvested six months ahead of schedule. In November 2007, the Company became the first AIM-listed fund of its kind tosuccessfully realise significant returns on its investments. Attracting anumber of blue-chip investors, Trikona TC is rapidly becoming a leading fund forforeign investment into a lucrative area. The Company currently has a market capitalisation of £233 million. Trikona TCis managed by Trikona Capital, the leading real estate management firm. http://www.trikonacapital.com This information is provided by RNS The company news service from the London Stock Exchange