Investor Update

RNS Number : 5163Q

Trans Balkan Investments Ltd

04 August 2010

 



TRANS BALKAN INVESTMENTS LIMITED
("TBIL or the "Company")

Investor Update

TechnomarketDomo ("TMD")

The Board announced on 3 June 2010 that it was in discussion with the minority shareholders of TMD concerning an unsolicited and indicative offer from them to purchase TBIL's equity shareholding of 61.8 % in TMD. The Board has since engaged Entrea Capital of Sofia, Bulgaria and Capital Partners of Bucharest, Romania, acting jointly, to be its independent financial adviser to assist it in respect to this offer as well as in reviewing other realistic options, including the sale of TBIL's holding in TMD in whole or in part to a third party.  Furthermore, the Board can confirm that it has also appointed Ernst & Young to prepare an independent fair valuation of TBIL's holding in TMD. This indicative offer has just been followed by a further offer from one of these minority shareholders acting alone.  Discussions in respect to these offers are continuing.

Property Companies

The Board reports that the sale of Iztok, one of the three former cinema sites in Sofia, owned through Pelican and which was mentioned in an earlier announcement of 3 June 2010, was completed on 30 July 2010 to Billa Nedvijimosti EOOD.  The net sale proceeds amounting to EUR 1,428,524 in cash have been received and will be used to fund the Company's liabilities and continuing operations.  The investment in Iztok was valued by the professional valuer, CB Richard Ellis, and subsequently approved by the Board, at a fair value of EUR 1,400,000 as at 31 December 2009.

Furthermore, a preliminary agreement for the sale of Evropa Palace, also one of the former cinema sites, has been signed with the completion scheduled for mid September 2010. Pelican, one of TBIL's wholly owned property subsidiaries, remains in discussions with potential buyers for the sale of Urvich, the one remaining former cinema site.  

In respect to the Banya Hotel and Spa project, TBIL continues with its discussions with DSK Bank and its parent bank OTP in Budapest concerning a proposal for completing the project.  No final resolution has yet been reached in relation to the Sozopolis Resort project.

Report and Accounts

The Company reported on 30 June 2010 that the audit of the group's financial statements for the year ended 31 December 2009 had been delayed due, in the main, to issues relating to the high level of asset disposals during the year, the considerable restructuring of the TBIL group within the same period as well as to discussions concerning the future of TechnomarketDomo.

As a consequence, in accordance with AIM Rules, the trading of all the Ordinary Shares of the Company was temporarily suspended.  These issues are taking longer than expected to resolve with Deloittes, the Company's auditors, and, with considerable regret, the financial statements for the year ended 31 December 2009 are not now expected to be sent to Shareholders before the middle of September 2010.

Enquiries:

Trans Balkan Investments Limited	Ian Schmiegelow (Chairman) Natalie Weedon	Tel: + 44 20 7630 3350
Financial Dynamics	Ed Gascoigne-Pees Nick Henderson	Tel: + 44 20 7269 7132
Collins Stewart Europe Limited (Nomad)	Stewart Wallace	Tel: [phone]
KBC Peel Hunt Limited (Broker)	Capel Irwin	Tel: + 44 20 7418 8900

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