Vostok Nafta’s Board of Directors Proposes Distribution of Cash

8/15/2012 2:00 AM EST

Vostok Nafta Investment Ltd
Company Announcement

Vostok Nafta’s Board of Directors Proposes Distribution of Cash


The Board of Vostok Nafta Investment Ltd (“Vostok Nafta” or the “Company”)
proposes to distribute SEK 18.00 per Swedish Depository Receipt (SDR) in the
Company through a share split in combination with a mandatory redemption
procedure. This proposal means that each SDR will be divided into two SDRs, of
which one will be redeemed. The Board will convene an Extraordinary (Special)
Special General Meeting to be held on August 29 to resolve on the program. If
approved, the redemption procedure is automatic, which means that no action is
required from the holders of SDRs. Altogether, the proposal means that
approximately USD 242 million will be distributed to the holders of Vostok
Nafta SDRs. 

From its inception in the mid-1990s, Vostok Nafta invested mainly in blue chip
elements of the nascent Russian equity market when potential returns were high.
As the potential return of blue chips came down over time, the Company’s focus
gradually shifted to less liquid shares, and in 2005 the company further
ventured out into unlisted investments, or private equity. 

Over the last few months the Company has exited most of its positions in
Russian listed stock. Given the lack of clear alternative investments with a
potential to generate the returns the Company seeks in all its investments, the
Board considers that the cash generated from these sales is best handled by
distributing to the shareholders, noting that there is no shortage of fund
managers focusing on Russian listed securities should the investors wish to
remain exposed to this segment of the Russian market. After the cash
distribution, the remaining portfolio will consist mainly of the four
cornerstones: Tinkoff Credit Systems, Avito, Black Earth Farming and RusForest,
companies which in the Board’s view retain their potential for high returns. 




         For further information contact:
         Per Brilioth or Robert Eriksson: tel: +46 8 545 015 50.