EOS Russia’s net asset value at SEK 96.75 as of 31 May
As of 31 May 2007, EOS Russia’s net asset value was approx. SEK 96.75. At this time, shares in UES accounted for approx. 74% of the assets. Other Russian utility shares made up about 24% and 2% was cash.
EOS Russia is a newly-founded investment company headquartered in Stockholm, which intends to list on First North, a market place operated by the Stockholm Stock Exchange. An offer is currently underway to acquire shares in EOS Russia. The purpose of the offer is to raise additional capital in order to implement the company’s investment strategy of investing in Russian utility shares and to assure good liquidity for EOS Russia’s shares.
Net asset value per share is being published on two occasions during the subscription period, which runs from 28 May to 12 June 2007. The next publication of the net asset value will be around 9 June 2007.
A number of institutional investors have invested a total of SEK 1.3 billion in EOS Russia, via a private placement in May 2007. Some of this amount was received in cash and has now for the most part been invested in shares in state-controlled UES, Russia’s largest utility holding company.
Due to bank holidays in Russia on 11 and 12 June 2007, the principles for the calculation of the net asset value on 12 June 2007, which provide the basis for the price per share in the offer, have been adjusted in accordance with the appendix to this press release.
EOS Russia, a newly-formed investment company headquartered in Stockholm, intends to list on First North, a market place operated by the Stockholm Stock Exchange. The overall objective of the company is to offer attractive returns via investments in the Russian utility sector. A prospectus outlining the offer and the trading of shares can be downloaded from EOS Russia's Web site (www.eos-russia.se), HQ Bank's Web site (www.hq.se) and Avanza's Web site (www.avanza.se). The prospectus can also be obtained free of charge in hard copy format from EOS Russia and HQ Bank (Norrlandsgatan 15 D in Stockholm), or ordered by phone on: +46-8-700 00 99. Application for subscription of shares in the offer is made in accordance with the instructions in the prospectus.
Stockholm, 1 June 2007
EOS Russia
For further information, please contact:
Sven Thorngren, CEO: +46 70 517 0660
APPENDIX
Adjusted principles for the calculation of the net asset value in conjunction with the offer, due to bank holidays in Russia on June 11 and 12, 2007
The company’s net asset value per share, which provides the basis for the price per share in the offer, is based on the value of the company’s assets, less liabilities, provisions and any minority interests, divided by the number of shares outstanding before the completion of the offer. The value of the company’s liabilities, minority interests and assets is calculated on the basis of their nominal value as of 11 May 2007, on the basis of the company’s balance sheet as reviewed by the company’s auditor on the same date, adjusted for changes since said date. Costs in conjunction with the issue conducted on 8 May 2007 will be charged to the company, but will not be taken into account for the calculation of net asset value per share as below. The price per share in the offer will be rounded off to the nearest 0.25 SEK.
The value of the company’s shareholding is calculated based on the following principles:
Group I:
UES (common local shares) as well as UES GDRs (General Depositary Receipts)
Computed on the basis of the price of the UES GDRs on London International (London Stock Exchange’s marketplace for trading in foreign shares) at 6pm, Moscow time, on June 12, 2007, defined as the average of the bid and ask price.
Group II:
OGK-2, OGK-5, OGK-6, Irkutksenergo, Krasnoyarskenergo, TGK-1, Sayano-Shusenskaya GES, Tulenergo, Udmurtenergo, Udmurtenergo prefs, Sverdlovenergo and Volga GES
Computed on the basis of the price of the shares on RTS at 6pm, Moscow time on June 8, 2007, defined as the average of the bid and ask price. However, the Board will take into account the development of UES GDRs from this point through 6pm, Moscow time, on June 12, 2007. In the event that the Board determines that the price on MICEX (Moscow Interbank Currency Exchange, the marketplace for Russian shares with settlement in roubles) for any share or shares in this group provides a better basis for calculating the price due to better liquidity and thus more relevant bid and ask prices, the Board reserves the right to use instead the MICEX pricing as the basis for the computation.
Group III:
Other shares
The main basis for the valuation of these shares is the book value on May 11, 2007. However, the Board will take into account the general market trend for Russian power shares during the period through June 12, 2007. All shares in Groups I-III will be recalculated from US dollars to Swedish kronor based on the SEK/USD exchange rate at 6pm (Moscow time) on June 12, 2007. The EOS Board sets the company’s net asset value.
The offer pursuant to this press release does not extend to private investors in countries other than Sweden. The offer does not extend to parties whose participation requires prospectuses, registration or other actions beyond those specified by Swedish law. Neither the prospectus nor the application form may be distributed in any country where distribution or the offer requires action described above or violate regulations of said country. Application concerning acquisition of shares in violation of the above may be declared null and void. The shares covered by the offer pursuant to the prospectus have not been, and will not be, registered under the 1933 United States Securities Act (the ”Securities Act”) or the law of any Canadian province and may not be offered or sold, whether directly or indirectly, within the United States or Canada or to parties domiciled there other than under extraordinary circumstances that do not require registration under the Securities Act or the law of any Canadian province.