euro adhoc: EIC Electricity SA
Adhoc & Media Information (E)
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
Zurich and Geneva, June 27, 2003
EIC Board in favor of orderly liquidation
According to the intention of the Board of Directors, the listed
investment company EIC Electricity SA ("EIC") shall not execute any
investments in new projects and shall proceed to sell its assets in
the mid-term with a subsequent orderly liquidation. EICs asset
manager - EIC Partners AG - has been requested to prepare a
divestiture plan.In addition, the Board of Directors considers to proposing an additional nominal value reduction at the next regular General Assembly in order to disburse unneeded cash to its shareholders. The Board of Directors assumes a completion of divestitures and liquidation approximately by the end of 2005.
Fair Value of SEFL reduced by 38%
After a thorough review of the earnings outlook of Scandinavian
Energy Finance Limited ("SEFL"), EIC has decided to reduce the fair
value of its 49% share in SEFL by 38% as of June 30. SEFL finances
wood-fired district heating systems in Sweden. SEFL currently
represents 37% of EICs Net Asset Value ("NAV").The impairment of the investment is necessary after a planned adjustment of tariffs is delayed due to unexpected legal obstacles. In addition, the technical performance of the plants was below expectations during the 1st half of 2003, leading to lower than expected results.
The adjustment to the Fair Value is based on the assumption, that EIC - together with its joint venture partner US Energy Systems and within a well-defined framework - will inject additional funds to the operating companies in order to overcome the critical liquidity situation.
Overall good half year result of EIC
Per June 30, 2003 and after adjustment of the SEFL fair value, the NAV per EIC share equals to CHF 16.19, representing an increase of 5% compared to beginning of the year.
According to EIC, the businesses of its other private equity investments performed in line with expectations. Therefore the fair values of Ensys and Termobahia have not been adjusted. The EIC Board of Directors is pleased that the decisions of the General Assembly of March 14 have been implemented in an expeditious manner. As a result of these decisions, EIC disbursed CHF 51.85 per share in the form of an open-ended fund to its shareholders.
EIC Electricity is listed on the SWX Swiss Exchange and on the Frankfurt Securities Exchange (Bloomberg: EIC SW Equity / EIV GR Equity). The company is specialized in investments in power and heat generation, transmission, trading and distribution.
For further inquiries please contact: Dominique Candrian EIC Partners AG, Feldmeilen Phone: +41 43 844 10 02.
end of announcement euro adhoc 11.07.2003
Further inquiry note:
Herr Candrian Dominique
Branche: Electricity Production & Distribution
ISIN: CH0007162958
WKN: 940179
Index: Investment Index (IGSP)
Börsen: Frankfurter Wertpapierbörse / official dealing
SWX Swiss Exchange / official dealing