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2016-12-13

East Capital Explorer AB: ECEX completes sale of Starman Group to Polaris

- cash consideration of EUR 83.6m

East Capital Explorer AB (publ) ("ECEX") today announced that it has
completed the sale of its 63 percent stake in Starman Group to OÜ
Polaris Invest, a minority shareholder in Starman, that has exercised
its pre-emption right. The transaction, originally announced on 14
March 2016 as a sale to Providence Equity, values Starman at an
enterprise value of EUR 208m. The transaction crystallized a cash
consideration to ECEX of EUR 83.6m, corresponding to an exit gain of
EUR 37.5m and a gross IRR of 24 percent over 3.5 years.

Mia Jurke, CEO of East Capital Explorer, commented: "I am pleased to
announce the completion of this transaction, which crystallizes a
significant value creation over the past years. We are working
intensely with our investment pipeline, while we continue with the
share buyback program launched in May."

East Capital Explorer has invested a total of EUR 46m in the Baltic
cable TV operator Starman, comprising the initial investment in 2013
and an add-on investment in 2015 in conjunction with Starman's
acquisition of Lithuanian Cgates.

The cash consideration includes parts of the previously announced
earn-out and no additional earn-out proceeds are expected. The cash
consideration prompts a carried interest to East Capital of
approximately EUR 6.7m that is expected to be settled by year-end.
The net positive effect on ECEX' Net Asset Value from the transaction
is approximately EUR 2.1m, or 0.9 percent, as a result of higher net
proceeds compared to current book values. Net IRR (net of management
fees and carried interest to East Capital as well as transaction
costs) amounts to 18 percent.

In connection with closing of the transaction, Polaris and East
Capital Explorer have agreed to settle the pending arbitration
dispute.

Please refer to East Capital Explorer's press releases per 14 March
2016 and 26 September 2016 for more detailed information regarding
the transaction.

Contact information

Mia Jurke, CEO, East Capital Explorer, +46 8 505 885 32

Lena Krauss, CFO and IR, East Capital Explorer, +46 73 988 44 66

About East Capital Explorer

East Capital Explorer AB (publ) is a Swedish investment company,
offering unique investment opportunities in Eastern Europe, where the
Baltic countries represent the company's largest investment region.
The company primarily invests in unlisted assets within the private
equity and real estate segments. East Capital Explorer's main
investment theme is domestic growth and the company targets fast
growing sectors such as Retail and Consumer goods, Financials and
Real Estate. East Capital Explorer is listed on Nasdaq Stockholm, Mid
Cap.

Listing: Nasdaq Stockholm, Mid Cap - Ticker: ECEX - ISIN: SE0002158568
-

Reuters: ECEX.ST - Bloomberg: ECEX SS Equity
This information is information that East Capital Explorer AB (publ)
is obliged to make public pursuant to the EU Market Abuse Regulation.
The information was submitted for publication, through the agency of
the contact persons set out above, at 13:15 CET on 13 December.

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http://news.cision.com/east-capital-explorer-ab/r/ecex-completes-sale-of...
http://mb.cision.com/Main/13001/2147812/603199.pdf

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