Reconstruction Capital II Ltd New Valuations of Private Equity Positions (0913I)

TIDMRC2

RNS Number : 0913I

Reconstruction Capital II Ltd

30 March 2020

30 March 2020

Reconstruction Capital II Limited ("RC2" or the "Company")

New Valuations of Private Equity Positions

As part of the annual audit process, RC2's auditors have requested from independent third-party valuers new valuations of the Company's investments in Policolor S.A. and Mamaia Resort Hotels SRL as at 31 December 2019.

Because the change of Telecredit IFN SA's business model from lending to individuals to financing small and medium sized companies is still in progress, RC2's investment in Telecredit IFN SA ("Telecredit") has not been valued by independent third-party valuers, but rather reflects RC2's share of Telecredit's net asset value audited under IFRS as at 31 December 2019.

The table below shows the new and prior valuations of the main private equity positions:

 
                         Prior valuations EUR   Revised valuations 
                                                               EUR 
 Policolor SA                      18,320,000           12,000,000 
                        ---------------------  ------------------- 
 Mamaia Resort Hotels               4,228,219            3,371,233 
                        ---------------------  ------------------- 
 Telecredit IFN SA                    895,764              804,859 
                        ---------------------  ------------------- 
 TOTAL                             23,443,983           16,176,092 
                        ---------------------  ------------------- 
 

The above new valuations are based on assumptions applicable prior to the outbreak of the COVID-19 pandemic, and consequently do not reflect the negative impact of the pandemic.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information, please contact:

Reconstruction Capital II Limited

Cornelia Oancea/Anca Moraru

Tel: [phone]

Grant Thornton UK LLP (Nominated Adviser)

Philip Secrett

Tel: [phone]

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March 30, 2020 09:30 ET (13:30 GMT)