TIDMERE

RNS Number : 6288S

Eredene Capital PLC

04 December 2012

   Date:                    4 December 2012 
   On behalf of:        Eredene Capital PLC ("Eredene" or "Eredene Group")

Embargoed until: 0700hrs

Eredene Capital PLC

Eredene has signed an indicative term sheet to sell its stakes in Gopi Resorts Pvt Ltd and Matheran Realty Pvt Ltd

Eredene Capital PLC (AIM: ERE), the AIM quoted investor in Indian infrastructure, announced today that it has signed an indicative term sheet with a potential cash purchaser of the Eredene Group's stakes in Gopi Resorts Pvt Ltd ("Gopi") and Matheran Realty Pvt Ltd ("Matheran") for a single up-front payment of INR 62.5m (GBP7.2m). Matheran and its subsidiary Gopi are developing a low-cost housing project near Mumbai.

As announced on 3 July 2012, Eredene purchased an additional stake in Matheran for GBP2.6m after the conclusion of an arbitration process. Including that purchase, the investments in Matheran and Gopi had a total carrying value of GBP13.8m. However, as the asset is now held for resale Eredene is required to reflect this investment at prudent fair value instead of consolidating it as a subsidiary in its Interim Results to 30 September 2012. Eredene will therefore recognise a write down for the Matheran and Gopi investments of GBP6.6m, which equates to 1.8 pence per share.

Eredene has previously announced that it would not make investments in new projects in India and that it would seek to realise its existing investments, and this term sheet is the first announceable step in that realisation programme. An eventual sale of its stakes in Matheran and Gopi would also mean that Eredene's remaining core investments in India were all in port services, logistics and warehousing.

For further information:

Eredene Capital PLC

   Alastair King (Chief Executive) / Brian Mooney                      Tel: +44 20 7448 8000 
   brian.mooney@eredene.com                                                 Tel: +44 7808 162 458

Numis Securities Limited (Nominated adviser & joint broker)

   Heraclis Economides (Nominated Adviser) / David Benda    Tel: +44 20 7260 1000

Arden Partners plc (Joint broker)

   Chris Hardie / Justine Waldisberg                                          Tel: +44 20 7614 5917

Redleaf Polhill (Financial PR)

   Henry Columbine / David Ison                                                Tel: +44 20 7566 6708

eredene@redleafpolhill.com

Notes to Editors:

-- Eredene Capital PLC is a leading UK-based AIM quoted investor in infrastructure projects in India. It focuses primarily on port services, logistics and warehousing.

-- Eredene trades on the Alternative Investment Market ("AIM") of the London Stock Exchange.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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