Published: 2013-05-03 07:00:00 CEST
Eastnine AB
Company Announcement
East Capital Explorer AB - East Capital Explorer acquires a majority stake in Starman, the leading cable TV operator in Estonia
East Capital Explorer has agreed to acquire a majority stake in Starman,
the
leading cable TV, broadband internet and voice cable services provider
in
Estonia. East Capital Explorer will invest approximately EUR 24m to acquire
51%
of the company based on a total enterprise value of EUR 107m, and the
remaining
stake of 49% will be held by Starman's founders, Peeter Kern and
Indrek
Kuivallik. East Capital Explorer will acquire the shares from the
existing
owners, a consortium led by Bancroft Private Equity Gmbh & Co. KG. The
founders
will increase their current equity stakes in Starman by investing an
additional
EUR 5m on the same terms as East Capital Explorer. SEB and Swedbank
are
financing part of the acquisition with an acquisition loan.

Mia Jurke, CEO
of East Capital Explorer, says: "We are pleased to make this
investment into
Starman, which will correspond to almost 9% of the total Net
Asset Value as of
31 March 2013, and by making the transaction, the part of
direct investments in
the portfolio will significantly increase. Private Equity
in the Baltics is one
of our focus areas and we see a strong potential in the
company which will
benefit from the consumer driven growth in the Baltic
countries".

Gert Tiivas,
Head of Baltic Private Equity, East Capital, representing the
Investment
Manager, says: "Starman is a well-managed company with a track record
of solid
financial performance and high profitability. We see further
opportunities for
growth in this area in the Baltics and Starman is well-
positioned to take
advantage of this growth. We are looking forward to further
developing the
company together with the founders."

Starman has approximately 130,000 cable
TV and 60,000 broadband clients. Its
network is 100% digital and covers all the
major cities in Estonia. The
company's revenues in 2012 amounted to EUR 28m and
Ebitda was EUR 13m.

The transaction is subject to approval from the Estonian
competition
authorities, and is expected to be completed during the second
quarter of 2013.
Starman will be treated as a subsidiary of East Capital
Explorer. As a result of
this, the Company's interim report for the period 1
January - 30 June 2013 might
be postponed.

Contact information:
Mia Jurke,
CEO, East Capital Explorer +46 8 505 885 32
Charlotte Åsberg, Investor
Relations Manager, East Capital Explorer
+46 8 505 885 94
Gert Tiivas, Head of
Baltic Private Equity, East Capital,
+372 640 6664


Financial reporting
calendar - East Capital Explorer:

  * Monthly Net Asset Value report on the
fifth working day after the end of
    each month
  * Interim Report, 1 January
- 31 March 2013 on 8 May 2013
  * Interim Report, 1 January - 30 June 2013 on
14 August 2013
  * Interim Report, 1 January - 30 September 2013 on 11 November
2013



About East Capital Explorer

East Capital Explorer AB (publ) is a
Swedish company, created with the specific
aim of bringing unique investment
opportunities in Eastern Europe to a broader
investor base. The company invests
mainly in East Capital's special fund
products but it also makes direct
investments into private and public companies.
East Capital Explorer's main
investment theme is domestic growth and the Company
targets fast growing
sectors such as Retail and Consumer goods, Financials and
Real Estate. East
Capital Explorer has appointed East Capital to manage its
investment
activities. East Capital Explorer is listed on NASDAQ OMX Stockholm,
Mid Cap.


 Listing: NASDAQ OMX Stockholm, Mid Cap - Ticker: ECEX - ISIN: SE0002158568 -
 
 Reuters: ECEX.ST - Bloomberg: ECEX SS Equity - Analysts: Carnegie, Svenska
   
                             Handelsbanken

This information is disclosed in
accordance with the Securities Markets Act, the
Financial Instruments Trading
Act and demands made in the exchange rules. It was
            released for
publication at 7:00 a.m. CET on 3 May 2013.

[HUG#1698992]

 


130503 - Press Release.pdf