Investment Update

RNS Number : 4633I

Epicure Qatar Equity Opportunities

19 November 2008

 

19 November 2008

Epicure Qatar Equity Opportunities Fund plc

Investment Update 

Since 26 June 2008, the Net Asset Value ('NAV') of Epicure Qatar Equity Opportunities Fund plc ('EQEO') has declined by 53.6%. In Sterling terms the decline is 25.6%. This compares to declines since 30 June in the DSM, FTSE All Share and MSCI Emerging Markets indices of 53.6%, 44.2% and 41.8% respectively (all in USD terms). 

The Board, Investment Manager and Investment Adviser view the current level of discount to NAV at which EQEO's shares are trading as an aberration that should reduce when markets normalise. The Board has been mindful of the level of discount and monitors it regularly. The Board would also like to remind investors of the statement made in EQEO's admission document that, to the extent that the volume weighted average market price of the ordinary shares in any three month period is at a discount of more than 10 per cent. to the NAV per ordinary share, the Directors will consider proposals to purchase ordinary shares in the market. EQEO's shares are currently trading in excess of that 10% discount. 

At the Company's AGM on 31 October 2008, the Company renewed its authority to purchase up to 14.99% of the Company's ordinary shares. The Company also obtained shareholder approval to apply to the High Court of Justice of the Isle of Man for confirmation of the cancellation of the amount standing to the credit of the share premium account that was created following the placing of shares on 20 July 2007 and 13 December 2007 and that the sums arising from such cancellation be credited to the Company's distributable reserves. The High Court approval is expected to be obtained within approximately 6 weeks.  

Following the High Court approval, should the volume weighted average market price of the ordinary Shares continue to trade at a discount of more than 10 per cent. to the NAV per ordinary share, it is the Board's current intention to commence a share buy back programme. The Company has authority to buy back up to 14.99% of its share capital, which equates to 37,104,375 ordinary shares, although it is not the Board's current intention to fully utilise this buy back authority. The amount of any share buy back will depend on, amongst other things, market conditions and the Company's current cash balances.  

Epicure Qatar Equity Opportunities plc
Nick Wilson	[phone]
Leonard O'Brien	+41 (0) (22) 908 1190
M:Communications	[phone]
Tim Draper
Marylene Guernier
Panmure Gordon	[phone]
Richard Gray
Andrew Potts
Ashton Clanfield

 

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