13 Jun 2014 07:00
TAU CAPITAL PLC
(the "Company" or "Tau")
Investment Update
Based on the advice of its Investment Advisor, the Board of Tau has reviewed the valuation of its investment in Stopharm LLP ("Stopharm") and estimates that the value of Stopharm should be reduced to USD8 million. This value will be used to calculate the NAV at 30 April which will be announced shortly together with details of the timetable for the fourth Tender Offer.
The decision to further impair the value of Stopharm follows the devaluation of the Tenge in February 2014 and an assessment of the likely impact this will have on the performance of Stopharm in the short term, Sales revenue is in Kazakhstan Tenge and Stopharm acquires its pharmaceutics in other currencies such as the US Dollar and Euro. The Tenge sale prices are typically set for 12 months and cannot be adjusted upwards. According to a press release for the Kazakhstan Central Bank, it stated that it acted due to the effect of US tapering on emerging markets and the impact of the devaluation on the currencies of trading partners such as Russia.
Further information, please contact:
IOMA Fund & Investment Management Ltd Philip Scales | Tel: +44 (0) 1624 681250 |
Numis Securities Ltd Nominated Adviser: Nick Westlake / Hugh Jonathan Corporate Broking: Alex Ham | Tel: +44 (0) 20 7260 1000
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TAU.L (TAU)