Business
Letter to Directors of EnergyO Solutions Russia AB
Letter to Directors of EnergyO Solutions Russia AB.
About this update from City Of London Investment Group Plc
[{"type":"text","content":"\n \nRNS Number : 7307J City of London Investment Group PLC 10 August 2012 \n \n\n10 August 2012\n \nCITY OF LONDON INVESTMENT GROUP PLC\n(\"City of London\")\n \nLetter to the Directors of EnergyO Solutions Russia AB\n \nCity of London (LSE:CLIG), a leading emerging markets asset management group, announces today that it has sent the following letter to the Directors of EnergyO Solutions Russia AB (First North, Stockholm: EOS).\n \n\"Dear Directors,\n \nEnergyO Solutions Russia AB (\"EOS\" or \"the Company\")\n \nCity of London Investment Management (CoLIM) currently holds on behalf of institutional clients 9.8 million shares (17.2%) in EOS.\n \nWe have noted the convening notice for an extraordinary general meeting on Wednesday 22nd August 2012 and we confirm that we will oppose both the synthetic share buyback and the proposed changes in the Company's corporate governance structure.\n \nSince its listing in 2007, the EOS share price has declined over 80%, the net asset value per share has declined by approximately 75% and shareholders have not received any dividends. In CoLIM's opinion, EOS should not enter into a four year management advisory agreement with the management team that has overseen this failure. The timing is particularly inappropriate ahead of the 2013 AGM, when EOS shareholders shall determine whether the Company should continue its operations.\n \nThe proposed synthetic buyback is an inadequate response to the current situation because it offers shareholders an opaque and uncertain exit at a discount to the underlying value of their assets in the Company. We are considering our own proposal. In the meantime we urge you to postpone the EGM and to bring forward proposals at the earliest opportunity that will permit shareholders to realise their investment at net asset value.\"\n \nFor further information please contact:\n \nSimon Westlake, Executive\nCity of London Investment Group\nTel: +44 (0) 20 7711 1552\n \nSimon Hudson / Andrew Dunn\nTavistock Communications\nTel: +44 (0) 20 7920 3150\n \nNotes for Editors:\nCity of London Investment Management is an established asset management group which has built its reputation by specialising in Emerging Market closed end fund investment since 1991. CLIM manages US$4.5 billion (as at 31st Ma...