Admission to AIM

23 Dec 2005 08:01

Reconstruction Capital II Ltd23 December 2005 23 December 2005 Reconstruction Capital II Limited ("RC2" or the "Company") Admission to trading on the Alternative Investment Market Reconstruction Capital II Limited (AIM: RC2) is pleased to announce that it hasbeen admitted to trading on AIM and that its ordinary shares commenced tradingtoday on AIM under the symbol "RC2". The Company raised €24,421,455 in grossproceeds in a placing of 24,421,455 ordinary shares at €1 per share. GrantThornton Corporate Finance is the Company's Nominated Adviser and LCF Edmund deRothschild Securities Limited is the Company's Broker. About Reconstruction Capital II Limited RC2 is a newly incorporated closed-ended Cayman Islands company created toinvest in private and listed equity securities and fixed income securities,including convertible and other mezzanine instruments, primarily in Romania andBulgaria. Investment Objectives Under a Private Equity Programme, RC2 intends to achieve medium and long termcapital appreciation through the investment in and subsequent disposal ofsignificant or controlling stakes in companies, both listed and private,established and/or operating primarily in Romania and Bulgaria. In addition, theCompany aims to make portfolio investments in listed equities and fixed incomesecurities, including convertible and other mezzanine instruments, issuedprimarily by Romanian and Bulgarian entities, under a Trading Programme. TheBoard intends to allocate RC2's resources in the medium term between the PrivateEquity Programme and the Trading Programme in the ratio 70:30. The Investment Manager and Investment Adviser The Company has appointed New Europe Capital SRL ("NEC Romania") to advise onthe Private Equity Programme and New Europe Capital Limited ("NEC London") tomanage the Trading Programme. NEC Romania and NEC London are both led by IonFlorescu. Ion Florescu has headed a team of investment professionals advisinginvestment funds in Romania since July 1997 when he set up his first fund,Reconstruction Capital Plc (RC1). The net asset value per share of RC1 increasedby 179% from inception in 1997 to 31 December 2005, the date of the last auditedaccounts, which equates to a compound annual growth rate of 14.9% over a periodexceeding 7 years. Investment Policy The Company will adhere to the following investment policies: Type of investment: Under the Private Equity Programme the Company will seek toinvest in and subsequently dispose of, significant or controlling stakes incompanies, both listed and private, established and/or operating primarily inRomania and Bulgaria. Under the Trading Programme, the Company will makeportfolio investments in listed equities and fixed income securities, includingconvertible and other mezzanine instruments, issued primarily by Romanian andBulgarian entities. Geographical focus: The main focus of the Company will be investments in Romaniaand Bulgaria. However, the Company may also seek to make investments inneighbouring countries, notably Ukraine, Serbia-Montenegro, Moldova, Croatia,Albania and the Former Yugoslav Republic of Macedonia. It is currentlyanticipated that in the medium term the Company will invest approximately 70 percent. of its assets in Romania and approximately 30 per cent. of its assets inBulgaria and neighbouring countries. Sector focus: Investments will primarily be made in the following areas: • Under the Private Equity Programme, the Company intends to invest in companies where it believes the Investment Adviser can add value by implementing operational and/or financial restructuring over a 3 to 5 year horizon. Investments will typically, but not exclusively, be focused on the following industry sectors: retail, consumer services, FMCG distribution, financial services, communications, logistics, media, light infrastructure, consumer products, food, real estate development. • Under the Trading Programme, the Company intends to invest in undervalued equity securities, IPO's of newly privatised companies and fixed income securities. Ion Florescu, Director of RC2, NEC Romania and NEC London, commented: "Romania and Bulgaria have made enormous progress over the last few years andare now among the fastest growing economies in Europe. Both countries are welladvanced in their privatization programmes, and are scheduled to join theEuropean Union in 2007. We are delighted to have set up a listed vehicle whichshould be able to take advantage of the considerable opportunity investing inthese countries now represents, and which should enable investors in the UK andabroad to participate in the development prospects of the South East Europeregion." Enquiries: Reconstruction Capital II LimitedIon Florescu Tel: +40 (744) 552386 Grant Thornton Corporate Finance (Nominated Adviser)Philip Secrett Tel: +44 870 991 2578 LCF Edmund de Rothschild (Broker)Claire Heathfield Tel: +44 (20) 7845 5960 This information is provided by RNS The company news service from the London Stock Exchange