EOS Russia carries out a directed issue of new shares

The Board of EOS Russia has decided to carry out a directed issue of new shares to two funds managed by the Canadian company Mackenzie Cundill. The directed issue of 1,462,500 shares will raise approximately SEK 158m (USD ~22m) for EOS Russia.

The shares in the directed new issue will be acquired by Mackenzie Cundill Recovery Fund and Mackenzie Cundill Emerging Markets Value Class, for SEK 108.5 per share, which corresponds to the price in the offer, dated 12 May 2007, to acquire shares in EOS Russia.

After the issue, the number of shares in the company will amount to 20,361,555, of which slightly more than 7% will be owned by Mackenzie Cundill.

The resolution to issue new shares has been passed under the authorisation issued by the extraordinary shareholders' meeting held on 8 May 2007. The purpose is to raise additional capital in order to implement the company's strategy to invest in Russian utility shares and to achieve a good liquidity in EOS Russia's shares.

"EOS' market value now exceeds SEK 2bn (USD ~300m) and the distribution of shares is satisfactory, which promotes the liquidity of the share," says Sven Thorngren, CEO of EOS Russia.

EOS Russia, a newly-formed investment company headquartered in Stockholm, which's shares will be admitted for trading on First North, a market place operated by the Stockholm Stock Exchange. The overall objective of the company is to offer attractive returns through investments in the Russian utility sector.