ERE Eredene Cap.

TIDMERE

RNS Number : 2611N

Eredene Capital PLC

27 September 2012

 
 Date:              27 September 2012 
 On behalf of:      Eredene Capital PLC ("Eredene" or the "Company" 
                     and its subsidiaries "the Eredene Group") 
 Embargoed until:   0700hrs 
 

Eredene Capital PLC

Consortium withdraws from the Ennore Container Terminal Project

Eredene Capital PLC (AIM: ERE), the AIM quoted investor in Indian infrastructure, announces that Bay of Bengal Gateway Terminal Private Limited ("BoB"), the special purpose vehicle set up to design, construct and operate a new container terminal at the southern Indian port of Ennore (the "Ennore Project"), has withdrawn from the Ennore Project with immediate effect. Eredene and its consortium partners, who are shareholders in BoB, were unanimous in their decision to withdraw from the Ennore Project. Eredene has a 22% shareholding in BoB.

The concession awarding body, Ennore Port Limited, has been informed of this decision, which was taken in light of the changed economic outlook in India since the concession was granted - the increased cost of local financing, depreciation of the Indian Rupee and lower projected growth in container traffic.

To date, Eredene has incurred costs connected with the Ennore Project of GBP1.6m. The value of Eredene's involvement in the Ennore Project (including all capitalised costs) was written down to zero in the last financial year as reflected in the Annual Report and Accounts released to the London Stock Exchange on 13 July 2012. The board of BoB has commenced the winding up of BoB.

Eredene also announced in the Annual Report and Accounts on 13 July 2012 that it was to return GBP15.3m to shareholders of the GBP29.5m that had been raised in connection with the Ennore Project. That return of capital was completed in August 2012.

Eredene is currently engaged in a detailed review of its investments in India which is being undertaken by the new internal team headed by Ranveer Sharma. This detailed review is scheduled to be completed by early December 2012. On completion of this detailed review, and when the winding up of BoB is further progressed, the board of Eredene expects to make an announcement regarding a further return of capital.

Enquiries:

 
 Eredene Capital PLC                         Tel: +44 20 7448 8000 
 Alastair King (Chief Executive) / Brian     www.eredene.com 
  Mooney 
 
 Numis Securities Ltd (Nominated advisor     Tel :+44 20 7260 1000 
  & joint broker) 
 Heraclis Economides / David Benda 
 Arden Partners plc (Joint broker)           Tel :+44 20 7614 5917 
 Chris Hardie / Justine Waldisberg 
 Redleaf Polhill Limited (Financial PR)      Tel: +44 20 7566 6720 
  Henry Columbine / Rebecca Sanders-Hewett    eredene@redleafpr.com 
  / David Ison 
 
 

Note to Editors:

-- Eredene Capital PLC is a leading UK-based AIM quoted investor in infrastructure projects in India. It focuses primarily on port services, logistics and transportation.

-- The Eredene Group has made investments of GBP47.5m in 11 projects in India - nine in ports and port services, logistics and distribution warehouses, one in an IT office and one in a large-scale, affordable housing development. Seven of its investee companies are revenue generating, of which two are dividend paying.

   --     Eredene trades on the Alternative Investment Market ("AIM") of the London Stock Exchange. 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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