East Capital Explorer co-invests with Orkla Financial Investments in East Capital's new Power Utilities Fund

East Capital Explorer invests EUR 81m in the new East Capital Power Utilities
Fund, amounting to 22% of the proceeds from the IPO. East Capital Explorer's
announced investments thereby total 47% of the IPO proceeds 

- The investment provides shareholders of East Capital Explorer with an
attractive exposure to a diversified portfolio of assets in the Russian power
utilities sector 

- Orkla Financial Investments has agreed to participate as a strategic partner
in the fund by investing EUR 30m 

 

The Board of Directors of East Capital Explorer has decided to invest EUR 81m
in the new East Capital Power Utilities Fund that will launch before year-end.
The investment amounts to 22% of the proceeds from the IPO, excluding any
additional proceeds if the over-allotment option is exercised. 

 

Orkla Financial Investments will be the strategic partner in the East Capital
Power Utilities Fund and will invest EUR 30m. Orkla's knowledge related to
power production, trading and renewable energy will mean a very valuable
contribution to the fund management. Furthermore, the investment provides Orkla
with an attractive addition to its existing Russian portfolio. 

 

Gert Tiivas, CEO East Capital Explorer said: “The extensive reforms that the
Russian power utilities sector will undergo over the next few years make the
sector highly interesting for investments. East Capital's experience of the
region and Orkla's experience of the sector is a very attractive combination.” 

 

The new East Capital Power Utilities Fund will invest in the power utilities
industry in Russia and other CIS countries such as Ukraine, Kazakhstan and
Georgia. The fund will invest in both listed and unlisted companies across
sub-sectors of the industry, including electricity generation, distribution and
services. 

 

The fund will target the many investment opportunities arising from the ongoing
power sector reform in Russia. The reform outlines that electricity generation,
sales and repair companies will be privatized to be able to operate in open and
competitive markets with market prices. This is expected to improve the cost
structure and efficiency of the Russian power sector, which is currently
lagging behind Western Europe. 

 

East Capital Explorer will not pay any subscription fees. The yearly management
fee amounts to maximum 2% of NAV plus performance fees. East Capital Explorer
and Orkla will be the initial investors in the fund. 

 

Including the investment of EUR 92m in the East Capital Bering Funds that are
made per December 3 and January 2, East Capital Explorer's announced
investments total EUR 173m, corresponding to 47% of the proceeds from the IPO.
East Capital Explorer intends to be fully invested within 18 months of the
first day of trading. 

 

Contact information:

Gert Tiivas, CEO East Capital Explorer +46 8 505 977 30

Louise Hedberg, Head of Communications/IR East Capital Explorer +46 8 505 977 20

 

Financial reporting calendar - East Capital Explorer:

- Monthly Net Asset Value report on the fifth working day after the end of each
month 

- Year-end report 2007, February 21, 2008

- Annual Report for 2007 available from April 7, 2008

- Interim report January 1 - March 31, 2008 on May 14, 2008

 

About East Capital Explorer │ East Capital Explorer AB is a Swedish company,
created with the specific aim of bringing unique investment opportunities in
Eastern Europe to a broader investor base. The company invests mainly in East
Capital's private equity and semi-public equity funds that provide exposure to
companies not otherwise accessible via the local stock exchanges in Eastern
Europe. East Capital Explorer targets fast growing sectors such as the power
utilities, financial, retail and consumer goods and real estate sectors. East
Capital Explorer has appointed East Capital to manage its investment
activities. Since November 9, 2007, East Capital Explorer is listed on the OMX
Nordic Exchange Stockholm, mid-cap segment. 

 
This information is such that East Capital Explorer must disclose in accordance
with the Swedish Securities Market Act. The information was submitted for
publication on 3 December 2007 at 08.40 CET. 


 

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