News Releases
News releases 2008
19 June 2008
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.
For further information:
| SovGEM Limited | |
| Hugh de Lusignan, Chief Executive Officer | Tel: +44 (0) 20 7389 0655 |
| hdelusignan@sovereigngroup.com |
NOMAD & Broker
| Landsbanki | |
| Tom Hulme / Sebastian Jones | Tel: +44 (0) 20 7426 9000 |
| tom.hulme@landsbanki.com |
Media enquiries:
Abchurch Communications Limited |
|
| Quincy Allan | Tel: +44 (0) 20 7398 7710 |
| quincy.allan@abchurch-group.com | 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. SovGEM joined AIM in November 2004 (AIM: SOV). Since joining AIM (23 November 2004) its Net Asset Value has increased from 12.6p to 31.24 p (as of 19 May 2008).
The Company invests in high-growth companies, virtually all of which are also already 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