European Capital Announces euro 30 Million Share Repurchase Plan
St. Peter Port, Guernsey (ots/PRNewswire)
European Capital Limited ("European Capital") (LSE: ECAS)
announced today that its Board of Directors has approved a share
repurchase plan.Under this plan, European Capital may repurchase up to euro 30 million of its ordinary shares at prices below its net asset value, as reported in its then most recently published financial statements, and otherwise in accordance with resolutions adopted at the company's annual general meeting held on 17 March 2008.
European Capital anticipates that share repurchases will be made from time to time, depending upon market conditions. The repurchase programme does not obligate European Capital to acquire any specific number of shares and may be discontinued at any time.
European Capital intends to fund the repurchases with available cash. The repurchase plan is expected to be in effect until 1 March 2009, or until the approved amount has been used to repurchase shares.
"We believe that acquiring up to euro 30 million of our shares at prices below European Capital's net asset value will be accretive on a per share basis to our earnings and net asset value and will also provide a great risk adjusted return to our shareholders," said Malon Wilkus, European Capital Chairman. "In the first quarter of 2008, European Capital invested a total of euro 168 million in seven companies, raised over euro 520 million in capital and realised euro 115 million from investments. Not only have our buyout and mezzanine teams been making outstanding investments in some of Europe's best middle market companies, but our capital raising activities and portfolio realisations give us significant resources to continue doing so."
ABOUT EUROPEAN CAPITAL
European Capital is a publicly traded investment company for
pan-European equity, mezzanine and senior debt investments with
current capital resources of approximately euro 2.8 billion (US$4.4
billion). It is managed by European Capital Financial Services
(Guernsey) Limited ("ECFGS"), an indirect wholly- owned affiliate of
American Capital Strategies Ltd. ECFSG, together with its wholly
owned subsidiary European Capital Financial Services Ltd ("ECFS"), is
referred to as the "Investment Manager". ECFS has offices in Paris,
London, Frankfurt and Madrid. As of 31 March 2008 the Investment
Manager had 44 investment professionals and 66 support staff.European Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts and provides capital directly to private and public companies headquartered primarily in Europe. European Capital generally invests between euro 5 million and euro 500 million per transaction in equity, mezzanine debt and senior debt to fund growth, acquisitions and recapitalisations.
The investment objective of European Capital is to provide investors with dividend income and the potential for share value appreciation by investing in debt and equity investments in private and public companies headquartered primarily in Europe.
European Capital seeks to achieve this through pursuing the following types of investments:
European Capital One Stop Buyouts(TM)
Through our One Stop Buyouts(TM), European Capital provides equity, mezzanine debt and senior debt as the lead investor in the buyout of private and public companies.
Mezzanine Direct with Sponsors
European Capital provides debt and equity financing for buyouts sponsored by private equity firms where European Capital is either the sole or lead mezzanine debt investor.
Syndicated Mezzanine and Senior Debt
European Capital provides mezzanine and senior financing for buyouts sponsored by private equity firms where European Capital is neither the sole nor lead mezzanine or senior debt investor.
Direct Investments
European Capital provides debt and equity financing directly to private and public companies, which is used for growth, acquisitions or recapitalisations, and investing in structured finance vehicles.
Companies interested in learning more about European Capital's flexible financing should contact Nathalie Faure Beaulieu at +44-(0)20-7539-7000 in London, Jean Eichenlaub at +33-(0)1-40-68-06-66 in Paris, Robert von Finckenstein at +49-(0)-69-71-71-297-0 in Frankfurt, or Luis Felipe Castellanos at +34-91-423-27-60 in Madrid, or visit the website at www.EuropeanCapital.com.
ABOUT AMERICAN CAPITAL
American Capital Strategies Ltd. (Nasdaq: ACAS) is the only private equity fund and alternative asset management company that is a member of the S&P 500. With US$19 billion in capital resources under management, the largest U.S. publicly traded alternative asset manager.
American Capital, both directly and through its global asset management business, is an investor in management and employee buyouts, private equity buyouts, and early stage and mature private and public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalisations and securitisations. American Capital and its affiliates invest from US$5 million to US$800 million per company in North America and euro 5 million to euro 500 million per company in Europe.
IMPORTANT DISCLOSURES
This document may contain "forward-looking statements". By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Many of these risks and uncertainties relate to factors beyond European Capital's control or which cannot be estimated precisely. These factors include, but are not limited to, uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional, national or international economic conditions, and changes in the conditions of the industries in which European Capital has made investments. Actual outcomes and results may therefore differ materially from any outcomes or results expressed or implied by any such forward-looking statements.
Performance data quoted above represents past performance of European Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in European Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, European Capital's current performance may be lower or higher than the performance data quoted above.
Nothing in this document is intended to be a profit forecast.
Web site: http://www.americancapital.com http://www.EuropeanCapital.com
Contact:
John Erickson, Dir., European Capital Financial Services (Guernsey)
Limited, or Tom McHale, Dir., European Capital Financial Services
Limited, or Justin Cressall, Equity Capital Markets, European Capital
Financial Services Limited, all of European Capital Limited,
+1-301-951-6122