Sale of the Company's holding in Superstroy

RNS Number : 5823D

Aurora Russia Limited

30 January 2015

 

Aurora Russia Limited (the "Company")

Sale of the Company's holding in Superstroy

The Board of Aurora Russia Limited announces that the Company has completed a sale of its 24.3% shareholding in Superstroy, held through the intermediate company, Grindelia Holdings Limited ("Grindelia").

The sale will result in cash proceeds for the Company, net of expenses, of approximately £680,000.  The shareholding was valued at £280,000 in the Half Year Statement of Financial Position as at 30^th September 2014, reflecting Superstroy's loss-making position which continued through to its year end of 31^st December 2014. The Rouble has declined approximately a further 38% against Sterling since 30^th September 2014.

The sale of the shareholding has been made after extensive and intense negotiations. Given the current circumstances prevailing in the region and specifically at Superstroy, which will clearly require a substantial restructuring to return to profitability, the Board believes that the sale proceeds achieved were as good as the Company could realistically expect to obtain. The former controlling shareholder of Grindelia sold its majority shareholding to a company controlled by Superstroy's former general manager some weeks ago.

Future of the Company

The Board will be reviewing the structure and cost base of the Company in the light of the Superstroy disposal and the fact that the Company will now hold one residual investment, a minority holding in Unistream Bank, a leading Russian money transfer company.

Unistream continues to perform well in a difficult market and the Board is determined, working together with its Adviser in Russia, to maximise the value derived for shareholders from this important holding. The Board will make a further announcement following this review.

30 January 2015

For further information please contact:

Gilbert Chalk, Chairman    [phone]

Numis Securities Limited

Nominated Adviser: Hugh Jonathan [phone]

Corporate Broking:  Nathan Brown [phone]

 

END

 

 

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