Expected Flotation of Investee Company

    RNS Number : 0537X
  SovGEM Limited
  19 June 2008
   

 Press release   19 June 2008

    SovGEM Limited

    ("SovGEM" or "the Company")

    Expected Flotation of Investee Company 

    SovGEM (AIM:SOV.L), the China focused emerging market finance house, is pleased to note that one of its investee companies, Cadogan
Petroleum plc ("Cadogan"), has announced that following a placing of 66,443,479 shares at 230 pence per ordinary share it is expected to
commence unconditional dealings on the main market  of the London Stock Exchange on Monday, 23 June 2008.  

    Cadogan, an independent company focused on acquiring quality oil and gas assets in Ukraine, has raised approximately £139 million,
giving it a prospective market capitalisation of approximately £531 million based on its IPO price of 230 pence per share. 

    SovGEM holds 533,811 (post-consolidation) shares in Cadogan which were acquired between 11 April 2006 and 3 December 2007 at a total
cost of £459,609 (equivalent to 86.1 pence per ordinary share).  The value of the holding at 230p per share is £1,227,765 an increase of
167% over our acquisition costs. 

    Conditional dealings in Cadogan's ordinary shares closed on the 18 June 2008 at 205 pence.

    SovGEM also notes that ReneSola, another investee company, has announced it is placing 9,000,000 American Depositary Shares ("ADS")
which will be traded on the New York Stock Exchange ("NYSE") at an offer price of US$20.50 per ADS.  SovGEM holds 100,000 ordinary ReneSola
shares that trade on the AIM market, the closing price of these shares on 18 June 2008 was 519 pence per share, an increase of 561% over our
initial purchase price of 78.5 pence per share on 8 August 2006.

     The Directors' best estimate of net asset value (NAV) is 30.8 pence per ordinary share as of the close of business on 18 June 2008,
updated following the above two corporate events.  

    Details of SovGEM, its investment focus and portfolio companies can be found on www.sovgem.com. 

    - ENDS - 
      
    For further information:
 SovGEM Limited
 Hugh de Lusignan, Chief Executive Officer  Tel: [phone] 
 [e-mail] 

    NOMAD & Broker
 Landsbanki
 Tom Hulme / Sebastian Jones  Tel: [phone]
 [e-mail] 

    Media enquiries:
 Abchurch Communications Limited
 Charlie Jack/Monique Tsang         Tel: [phone]
 [e-mail]     www.abchurch-group.com 


    Notes to Editors

    SovGEM Limited is an emerging market finance house incorporated in Jersey.  Its geographic investment focus includes China and other
emerging markets.  Since joining AIM in November 2004 its Net Asset Value per share has increased from 12.6p to 30.8p as of the close of
business on 18 June 2008. 

    The Company invests in high-growth companies, most of which are also profitable. SovGEM has an extensive network of professional
advisors and associates giving the Company access to the small cap Chinese and other emerging markets. The Company aims to realise profits
by investing in these companies as they undertake a major step change either through listing, evolving to a more senior financial market or
undertaking an attractive rights issue. These investments may comprise straight equity or debt instruments with an equity conversion scheme.
 

    Further information can be found at www.sovgem.com



This information is provided by RNS
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