Disposal

RNS Number : 5644F

Aurora Russia Limited

28 April 2014

 



AURORA RUSSIA LIMITED

DISPOSAL OF KREDITMART FINANCE

28 April 2014

On 3 March 2014, Aurora Russia Limited (the "Company" or "ARL") announced that it had completed the sale of Flexinvest Limited ("Flexinvest"), the ARL subsidiary in Cyprus which owned OJSC Flexbank ("Flex Bank").

The consideration for the disposal of Flexinvest was RUR189.1 million (approximately £3.2 million) in cash plus, as part of the sale, mortgages with a nominal value of RUR144.2 million (approximately £2.4 million) held by Flex Bank which were transferred to ARL's wholly owned subsidiary Kreditmart Finance Limited ("KFL").

As KFL owned shares in Flexinvest, it received its part of the £3.2 million cash proceeds which net of fees was approximately £261,500.

ARL announces that it has now agreed to sell KFL for a total consideration of RUR100 million (approximately £1.7 million) plus $450,000 (approximately £267,500), which was KFL's cash balance at the time of the transaction.

KFL's non-cash assets were held in the books of ARL at RUR140 million (approximately £2.4 million). The Board have agreed to the sale at a discount in the light of the current Russian market for banking assets and the difficult nature of the portfolio, which is the rump of the Flexinvest mortgage book and which could only otherwise be disposed of on a protracted piecemeal basis, which would be lengthy and uncertain.

In light of the above disposal, the Board announces that it intends to declare a further tender offer for aggregate gross consideration of at least £8.25 million. It is intended that the tender offer price will be an amount equal to an unaudited NAV per Share calculated as at 31 March 2014, less a discount to account for costs which is currently estimated at 1%. A further announcement setting out the detailed terms and conditions of the tender offer will be released, and a circular will be despatched to the Company's registered shareholders providing an opportunity to tender shares for cash, as soon as practicable. No further Shareholder approval will be required for the tender offer as the Company has an existing authority to repurchase the entire issued Share capital of the Company (less one share) through one or more tender offers.

Enquiries:
Aurora Russia Limited
Gilbert Chalk	[phone]
Numis Securities Limited	[phone]
Nominated Adviser: Hugh Jonathan
Corporate Broking: Nathan Brown
FTI Consulting	[phone]
Jack Hickey

 

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