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Kubera Cross-Border (KUBC)

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Friday 21 December, 2007

Kubera Cross-Border

New Investment

Kubera Cross-Border Fund Limited
21 December 2007

21 December 2007



                        Kubera Cross-Border Fund Limited



   KUBC invests up to US$21 million in a leading manufacturer of specialized
                             automotive components



Kubera Cross-Border Fund Limited ('KUBC') (LSE: KUBC), an investment company
traded on the AIM market of the London Stock Exchange, is pleased to announce
that it has acquired a significant interest in a leading manufacturer of
specialized automotive components (the 'Company') for an equity investment of up
to US$21 million (including the pro rata investment by affiliates of Kubera
Partners, LLC, the Investment Manager of KUBC).  The consideration for the
investment will be satisfied in cash. The first tranche of the KUBC investment
has closed, and further details about the Company and the transaction will be
provided upon the closing of the second tranche of the investment, which is
expected to take place in January.



The Company is India's first global scale manufacturer for original equipment
manufacturers ('OEMs') across the world in this particular area of automotive
components.  While India-based auto component manufacturers have shown strong
growth and profitability in recent years, Kubera Partners is particularly
enthused about this investment because the company operates at the very high end
of skill and knowledge-based manufacturing within the auto component sector.



The Company is well positioned to become a dominant player in this market.  It
has established world class quality, manufacturing, and delivery capabilities
certified by leading OEMs.  It offers complete concept to production capability
with integrated casting, polishing and plating facilities to its marquee client
base.  The Company's network of design, engineering, sourcing, warehousing,
logistics and sales and service offices spanning three continents enables it to
deliver the benefits of global sourcing and next-door service to its customers.



Ramanan Raghavendran, managing partner of Kubera Partners, said: 'We have sought
a business in this sector that provides unique skills-based manufacturing, and
is differentiated from more generic components manufacturers.  We look forward
to working closely with the Company's team in strengthening their balance sheet
and expanding their manufacturing operation to meet increased demand.'



At final closing, KUBC will own approximately 58% of the Company by way of both
a primary investment and a secondary purchase of shares from former
shareholders.  The Company reported EBITDA of US$ 4.2 million, for the financial
year ended 31 March 2007.  While the majority of the Company's revenues come
from US and European customers, it also has a substantial domestic Indian
business that has been growing rapidly.  The Company has been growing at an
approximate 100% compound annual growth rate ('CAGR') over the last 2 years and
is expected to grow at over 40% CAGR over the next 2-3 years.  KUBC obtained
attractive valuation terms, along with standard economic and governance rights.



Kubera Partners, as the investment manager of KUBC, invests in cross-border
companies that are Western headquartered and seek to leverage India and Asia
based resources for availability of talent or access to new markets; and
companies headquartered in India and Asia that seek to expand in Western markets
through acquisition or sales force development.  Kubera Partners is
differentiated by the track record of its principals and their complementary
experiences.



On behalf of KUBC, Kubera Partners aims to invest between US$20 million and
US$40 million per investment but can make significantly larger investments where
appropriate.  Further details on the investment manager can be found at
www.kuberapartners.com.



For more information contact:


Kubera Partners, LLC (Investment Manager of Kubera Cross-Border Fund Limited)
Ramanan Raghavendran, Managing Partner

Tel no: +1 (212) 295 2400


LCF Edmond de Rothschild Securities Limited (Broker)
Hiroshi Funaki

Tel no: +44 (0) 20 7845 5968


Grant Thornton Corporate Finance (Nominated Adviser)
Philip Secrett, Partner

Tel no: +44 (0) 20 7383 5100


                      This information is provided by RNS
            The company news service from the London Stock Exchange