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MBO Of Eastern Equities

MEDIACOM-RELEASE-EASTERN-EQUITIES

MBO OF EASTERN EQUITIES

Eastern Equities founder and chairman Peter Roebuck, and chief executive Murray Boyte have formed a joint venture with AMP Asset Management to bid for the shares of the listed Hawkes Bay transport, contracting and horticultural company.

On complete acceptance of the offer, the management buy out (MBO) will result in the delisting and privatisation of Eastern Equities.

"With a market capitalisation before the bid of less than $17 million, Eastern Equities is disadvantaged by being listed," said Mr Roebuck.

"Today's institutional investors prefer larger companies with greater liquidity and depth."

"Volatility in the share register and the share price has affected Eastern Equities' business plans. Having stable and committed ownership as a result of the MBO will benefit the company as well as its staff, customers and suppliers."

"A company like Eastern Equities is better suited to the rapidly developing private capital market rather than the listed market."

A notice was lodged with the New Zealand Stock Exchange today, offering to buy Eastern Equities at 62 cents per share. This represents a premium of 33.33% over the weighted average share price since the company's latest annual result about nine months ago.

"The offer provides all shareholders with liquidity and a healthy premium."

"Having the involvement of AMP Asset Management, New Zealand's largest funds manager, offers the company sound support and financial backing in its businesses. AMP is being advised by Pencarrow Private Equity, both of whom have considerable experience in backing MBOs."

The Eastern Equities board will now commission an independent report on the offer and then communicate with shareholders.

MEDIA RELEASE FROM EASTERN EQUITIES CORPORATION LIMITED




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