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2015-10-05

East Capital: East Capital wins First Ever Cayman Islands Court Ruling on "Fair Value" in the Context of Cayman Companies Mergers

East Capital, a specialist in emerging and frontier markets, announces the
positive outcome of the legal case to determine the fair value of shares held
in Russian oilfield services company Integra Group in conjunction with the
Management Buy Out (MBO), announced in March 2014. The ruling of Mr Justice
Jones dated 28 August 2015 resulted in East Capital becoming the first
investor ever to conclude the full court route to establish fair value
according to Cayman Islands Companies Law, increasing the value of the East
Capital funds’ holdings in Integra (including interest) by 24% over the MBO
offer price.

As an investment specialist, East Capital is a long-term and active investor
in numerous companies, including Integra Group, a company incorporated in the
Cayman Islands that was listed on the London Stock Exchange and subject to a
MBO in the spring of 2014. Following the announcement of the MBO, East
Capital considered that the offered price was below the fair value of the
company.

As the largest shareholder in Integra not part of the MBO consortium, East
Capital believed it was essential under these circumstances to ensure that
unit holders in the East Capital funds received a fair value for their
holdings in Integra.

East Capital successfully took legal action via theCayman Islands Companies
Law
, which offers shareholders who disagree with the price offered in a merger an
opportunity to dissent, and ultimately entails the Cayman Islands Grand Court
determining the fair value, should the parties fail to agree a fair price
between them.

The hands-on involvement of East Capital's investment team following the MBO
announcement resulted in the Court's decision which increased the value of
the recovery for the holdings in Integra (including interest) by 24% over the
MBO offer price in USD.

Commenting on the case, Jacob Grapengiesser, Partner at East Capital, said:“As
a long term and active shareholder, we saw it as our responsibility in
this case to do our utmost to attain fair value for our fund unit holders. We
are pleased that the efficient process to exercise our dissenting rights and
the fact that the Cayman Islands Grand Court demonstrated understanding of
the issue and the ability to determine fair value enabled us to do so,
strengthening the rights of many minority shareholders in similar situations.
This ruling contributes to positioning the Cayman Islands legal system as a
credible enforcer of legal rights in conjunction with responsible and
transparent investment practices.”

Contact information

MHP Communications

Christian Pickel/Lorena Sanchez

+44 (0)20 3128 8208/8549

eastcapital@mhpc.com

mediaenquiries@eastcapital.com

About East Capital

East Capital is a specialist in emerging and frontier markets. The company,
founded in 1997, bases its investment strategy on thorough knowledge of the
markets, fundamental analysis and frequent company visits by its investment
teams. East Capital actively manages EUR 2.6 billion in public equity,
private equity and real estate. It is headquartered in Stockholm, with
offices in Dubai, Hong Kong, Luxembourg, Moscow, Oslo and Tallinn.

www.eastcapital.com

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