The Norum II Fund (2003), a fund advised by CapMan Russia, has, in co-operation with other owners, completed a transaction to sell 100% of Tascom CJSC, a telecommunications service provider, to Moscow City Telephone Network OJSC (MGTS), a subsidiary of Mobile TeleSystems OJSC (“MTS” — NYSE: MBT), the leading telecommunications provider in Russia and the CIS. The Norum II Fund made its initial investment in Tascom through Bester Investments in 2004. A complete exit of Bester Investments will result in a final exit of the Norum II Fund. The transaction has no impact on CapMan Group’s results.
The Norum II Fund made its initial investment in Tascom in 2004. Tascom provides a wide range of telecommunication services to corporate clients, including virtual private networks (VPNs), local and long distance calling, broadband Internet, and Wi-Fi access.
“Tascom has proven to be an excellent investment for the Norum II Fund. The approximately 10x growth in Tascom revenues during our holding period are a testament to the experience and value creation capabilities of the CapMan Russia team. When the proceeds from the Tascom sale are distributed, the Norum II Fund will have generated returns in excess of 4.5x gross.” says Hans Christian Dall Nygård, Head of CapMan Russia.
The Norum II Fund will be fully exited when it sells its stake in Gars Telecom, the only remaining asset of Bester Investments. Bester Investments is jointly owned by the Norum II fund, the European Bank for Reconstruction and Development (EBRD), whose investment is advised by CapMan, and Quadriga Capital Russia, who became a shareholder in 2007 as a result of a second round of financing, in addition to other institutional and private investors.
For further information, please contact:
Alberto Morandi, Partner responsible for Bester Investments Ltd., CapMan Russia, tel. +7 495 620 4885
Hans Christian Dall Nygård, Head of CapMan Russia, tel. +7 985 111 9801
This press release is not an offer of any securities for sale in the United States, Canada, Japan, Australia or in any other jurisdiction where it would violate the laws of that jurisdiction or require measures other than those required under the Finnish laws. Securities may not be offered or sold in the United States absent registration under the US Securities Act of 1933 (Securities Act) or an exemption from registration. CapMan has not registered and does not intend to register any securities under the Securities Act and does not intend to make a public offering of any securities in the United States, Canada, Japan, Australia or in any other jurisdiction where offering without registration would violate the laws of that jurisdiction or require measures other than those required under the Finnish laws.
CapMan Russia www.capman.com/investment-teams/russia
CapMan Russia provides growth financing for Russian small and mid-sized enterprises. We have operated in the Russian private equity market since 1995 and are one of the strongest teams in Russia. We help our portfolio companies to pursue growth both in Russia and internationally. CapMan expanded its operations into the Russian market in May 2008 through the acquisition of Norum.
CapMan Russia www.capman.com
CapMan is one of the leading private equity firms in the Nordic countries and Russia, with assets under management of EUR3.0 billion. CapMan has four key investment partnerships — CapMan Buyout, CapMan Russia, CapMan Public Market, and CapMan Real Estate — each of which has its own dedicated investment team and funds. Altogether, CapMan employs approx. 120 people in Helsinki, Stockholm, Oslo, Moscow and Luxembourg. CapMan was established in 1989 and has been listed on the Helsinki Stock Exchange since 2001.
Tascom provides an array of telecommunication services to corporate clients, including virtual private networks (VPNs), local and long distance/international calling, broadband Internet, and Wi-Fi access. The company owns an extensive fibre-optic network (1,100 km in Moscow and in 50 towns of the Moscow region) and a wireless network in pre-WiMax standard.