Acquisition etc.

Equest Investments Balkans Ltd
28 March 2007



28 March 2007


EQUEST INVESTMENTS BALKANS LIMITED

Acquisition of Waste Management business in Sofia


Equest Investments Balkans Ltd ('EIB' or the 'Company'), the specialist investment company focused on retail and 
financial services, infrastructure and property development in South Eastern Europe, today announces a new acquisition 
in waste management in Bulgaria.



EIB has signed binding agreements to acquire Christota AD, Wolf 96 OOD and Ditz
AD, the three concession holding companies for waste collection and
transportation in Sofia (the 'Companies'), through Novera EAD ('Novera'), a
wholly owned subsidiary of EIB.  Novera is also acquiring other activities
related to waste management and infrastructure services that are provided in
Bulgaria and in the future for the broader Balkan region.



The Companies provide waste collection, street cleaning and snow clearing
services to the Municipality of Sofia in Bulgaria. The current infrastructure,
which has been built up over the past 10 years of the operations of the
Companies, consists of more than 350 waste collection trucks and other vehicles,
and over 1,800 employees.



Through its investment in Novera, EIB is committed to improve the waste
collection services in the region. For this purpose it is in negotiations with a
number of leading European waste management companies to help grow and develop
the operations of Novera in Bulgaria.



The consideration for the acquisitions is made up of EUR 45 million in cash,
with up to a further EUR 10 million payable in cash dependent on the performance
of the Companies in 2007. The initial cost of the acquisition of EUR 45 million
is being financed through a commitment of EUR 25 million by EIB and a mezzanine
debt facility of EUR 20 million from Accession Mezzanine Capital ('AMC'), a
leading mezzanine finance fund for Central & Eastern Europe, managed by
Mezzanine Management. Under the terms of the mezzanine debt facility, AMC will
be entitled to an equity stake of up to 6% of the equity in Novera EAD. It is
the intention of EIB upon closing of the acquisition, to refinance part of its
initial EUR 25 million commitment in the transaction through a senior bank debt
facility of up to EUR 15 million, as well as introducing a strategic partner for
further balancing the risk profile of the investment and its operations.  The
businesses are being acquired debt free.



The combined turnover of the concessionary Companies in the year ended 31
December 2006 was EUR 22.4 million and an EBITDA of EUR 5.4 million.  The
combined net assets of the Companies as at 31 December 2006 were EUR 13.6
million. Other service activities in waste management and infrastructure
services that are to be incorporated in Novera represent an EBITDA of EUR 6.1
million in the year ended 31 December 2006.





Petri Karjalainen, Managing Partner of Equest Partners, the advisory company to
EIB, said today: 'This investment constitutes our first investment in the
growing sector of waste management in the South East European region and we are
delighted to have finalised the investment following a lengthy period of
negotiations. The waste collection and cleaning services to be provided by
Novera are of significant importance to the City of Sofia and we look forward to
working constructively with our clients in the public sector and the
Municipality of Sofia to improve the service for the local community.'



'Following this investment EIB has majority holdings in 8 companies in the South
East European region in retail, financial services, property development and
waste management and a stock market capitalisation of some GBP 189 million. The
Novera investment was one of the opportunities that was highlighted during the
Company's fundraising in December 2006, and one in which the Company was in
exclusive negotiations. We are currently in the process of seeking to finalise
further investments in which the Company has been in exclusive negotiations.'



'EIB is in the process of preparing its financial accounts for the year 2006
which we expect to release to the market in late April 2007.'



For further information please contact:

Equest Partners Limited

+ 44 20 7240 7600
Petri Karjalainen
Naomi Kora


Mezzanine Management

+ 43 1 532 89 90
Franz Hoerhager
Nik Pichler


Collins Stewart Europe Limited

+ 44 20 7523 8325
Hugh Field


Financial Dynamics

+ 44 20 7831 3113
Ed Gascoigne-Pees
Nick Henderson


Notes to Editors:


Equest Investments Balkans Ltd is traded on the AIM market operated by the
London Stock Exchange and the Irish Stock Exchange. The company is one of the
leading international investment companies for the South East European region
focusing on sectors that are set to benefit from the growth in consumer spending
and disposable income in the region. The principal investment sectors of EIB
include retail, financial services, land and property development and
infrastructure opportunities. Following this announcement, the Company has
majority holdings in 8 companies in the region. Its 7 investments as at 15th
October 2006 were valued at EUR 232 million following which the Company
completed its AIM introduction with a further EUR 64.8 million (£43.9 million)
placement of new shares.



Equest Partners Ltd is Authorised and Regulated by the Financial Services
Authority (FSA) in the United Kingdom. Equest Partners provides investment
advisory services to Equest Investments Balkans Ltd. The Investment Manager for
the Company is Equest Capital Management Ltd. Equest employs more than 40
professionals in its headquarters in London, as well as in its regional
investment offices in the South East European including Sofia, Bucharest and
Belgrade.



Mezzanine Management Central Europe is the exclusive advisor to Accession
Mezzanine Capital. Thirteen leading institutional investors such as EBRD,
insurance companies and asset management firms committed €115 million capital
committed to AMC I Fund and to date €100 million to AMC II Fund.









EIB's Existing Investments:



Axis Retail



Through Axis Retail Holding, EIB has acquired 75% of Lynx Property BV, which
owns 100% of the subsidiaries trading as Technomarket (the 'Technomarket
Group'). The Technomarket Group is Bulgaria's largest wholesaler and retailer of
consumer and home appliances, with an estimated 40% share of the Bulgarian
retail market. Technomarket currently has 22 retail outlets located in major
cities throughout Bulgaria and is also active in Serbia, FYR Macedonia and
Romania.



Vitosha



Vitosha Insurance, the fifth largest insurance company in Bulgaria, founded in
1994 with operations in life and non life insurance. The company has a strategic
partnership with Uniqa, Austria's largest insurance company, who owns 20% of
Vitosha. EIB currently owns 69%.



Immofinance



Immofinance EAD was founded in 2004 by a team of experienced real-estate
investment and banking professionals. It is a wholly owned subsidiary of
Immofinance Holding Limited (BVI), owned by EIB. Immofinance is a specialist
investment and finance company for residential second home development projects
in Bulgaria. Current portfolio includes 7 projects at various stages of
development.


Pelican

Pelican Retail EAD was founded in 2004 by a team of experienced real-estate investment and banking professionals. It is 
a wholly owned subsidiary of Pelican Holding Limited (BVI), owned by EIB. Pelican develops retail space and facilities 
in Bulgaria, and currently has 5 projects at various stages of development.





Avto Union



Avto Union is a leading wholesaler and distributor of automotive and scooter
brands, as well as automotive products and services. Brands held exclusively
within the company include Fiat, Lancia, Mazda, Maserati and  Alfa Romeo cars,
as well as Piaggio, Vespa and Gilera motorbikes. The company is a joint importer
of Opel and Chevrolet cars for Bulgaria. Additionally, Avto Union owns Motobul,
the sole distributor of BP and Castrol lubricants for Bulgaria and AVIS
Bulgaria, providing rent-a-car and fleet services.



Familia



Familia Stores is one of the leading local operators in food retail in Bulgaria.
Familia is positioned in the convenience store segment of the food retail
market. The company now operates 26 stores in Sofia, and plans to open 7 new
stores during 2007.  Familia became a wholly owned subsidiary of EIB in July
2006.



Citadel



EIB, through its subsidiary is the sole owner of Citadel, a property holding
company. Citadel has acquired 87 hectares of land for EUR 2.4 million, situated
in key areas on the outskirts of Northern Bucharest, near Snagov. Plans are to
redevelop the land from existing agricultural use to a golf course and / or
residential development.



















This announcement has been issued through the Companies Announcement Service of

                           the Irish Stock Exchange.






                      This information is provided by RNS
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