Monbat AD has presented information about the current projects and the evolution of targeted prospects in the investment portfolio
Financial
MONBAT AD HAS PRESENTED INFORMATION ABOUT THE CURRENT PROJECTS AND THE EVOLUTION OF TARGETED PROSPECTS IN THE INVESTMENT PORTFOLIO OF THE GROUP DURING A SPECIAL MEETING WITH THE INVESTORS IN THE COMPANY ORGANIZED IN THE CITY OF SOFIA
On 08.10.2018, a meeting of the management of “Monbat” AD and the investors in the company has been conducted, with institutional and individual investors in attendance.
The motives for withdrawal of the Group from the transaction on the acquisition of the Tunisian manufacturer of batteries ASSAD have been presented during the meeting, as well as information about the current results, current projects and the evolution of the target prospects in the Monbat group. The investors have also been presented with the updated five-year plan of the Group and the strategy to utilize the raised funds in February 2018 for a corporate bonds issue.
The main justifications which have resulted to withdrawal of the corporate management from the transaction on the acquisition of ASSAD have been presented in detail by Mr. Petar Bozadzhiev, Executive Director of the Group. Mr. Bozadzhiev indicated that there were subsequent events, following the initial Due Diligence and it has been found that part of the initially identified risks related to the acquisition of ASSAD could not be managed effectively in the future, respectively they would result to realization of certain serious damages for the new owner, namely:
– Court disputes and a non-clarified status of the land on which the ASSAD plant has been built;
– Impossibility to retain control over an Algerian company, subsidiary to ASSAD, due to the existence of enforcement procedure over a portion of the shares of that company, and in view of the specifics of the Algerian legislation;
– A non-justified environmental risk, which could not be projected and respectively could not be managed in a reliable manner.
In relation to the withdrawal from the transaction with ASSAD, the main investment plans of the Group and the respective targeted use of the funds from the bond issue have been set out. Monbat shall continue to invest in its target prospects following a phased approach, which shall result to two positive effects:
– Decreasing the risk through diversification in a larger number of projects on a moderate scale;
– Ensuring sustainable operational management and integration of the new business activities and operations within the group
This strategy shall not compromise the expected scale of added value but it follow phased deployment of the investment targets and blending the individual projects’ returns. To support this, an Investment Platform with specific prospects and indicative added value for each of them over a period of 5 years has been presented during the meeting with the investors.
Detailed information can be found in the Presentation enclosed therein, as well as on the Monbat website: www.monbatgroup.com
contact for investors
Daniela Peeva
Investor Relations Director
tel. +359 2 988 2413
e-mail: investorrelations@monbat.com