REG - Jade Road Investmnts - Partial divestment in Meize Energy Industries

Jade Road InvestmentsAnnouncement

22/06/2022 07:45

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RNS Number : 7646P  Jade Road Investments Limited  22 June 2022

22 June 2022

JADE ROAD INVESTMENTS LIMITED

("Jade Road Investments", "JADE", the "Company" or the "Group")

Jade Road Investments Limited (AIM: JADE), the London quoted pan-Asian
diversified investment vehicle focused on providing shareholders with
attractive uncorrelated, risk-adjusted long-term returns, is pleased to
announce that the Company has successfully negotiated a partial divestment in
Meize Energy Industries Holdings Limited ("Meize"), one of the leading
privately-owned wind turbine blade manufacturing companies in China, currently
the third-largest holding in the Company's portfolio (7.7% of NAV as at
announcement).

On the 23(rd) of November 2011, the Company, through its wholly-owned
subsidiary Swift Wealth Investments Limited, subscribed to USD7.5MM of Series
B Preferred Shares. This investment equates to a shareholding of approximately
7.2% in Meize.

The Company is pleased to announce that it has entered into a share purchase
agreement ("SPA") for 112,500 shares of the Series B Preferred Equity in Meize
for consideration of USD1.2 million (the "Transaction Price"). The Transaction
Price will be received by the Company in three equal tranches. The number of
shares sold in this partial divestment represents 12.0% of the Company's
holding in Meize. The Company will hold approximately 6.3% interest in Meize
post this divestment.

Before the release of this RNS, the Company received the First Tranche Price
of USD400,000. The Company expects to receive the Second and Third Tranche
Price in late July and August 2022 as agreed in the SPA.

The Transaction Price implies a valuation of USD10.0 million for the Company's
investment in Meize, which indicates a 22.0% premium to the carrying value as
at the 30(th) of June 2021 (USD8.2 million). The profit from this disposal is
USD0.3 million.

This divestment, of which the sale consideration is settled offshore, marks
the culmination of a lengthy and successful turnaround effort by the Company
for private investment in China.

John Croft, Chairman of Jade Road commented: "Exiting private equity positions
held in Chinese companies requires patience as well as persistence, but as
demonstrated by this announcement, exits can be achieved, and in this case, at
a premium to the value of the asset held in our books. Whilst having no direct
connection with other privately held Chinese assets in our portfolio, it does
provide clear evidence that these assets have real value and that in time
realisations can be made delivering cash returns into the Company."

For further information on JADE, please visit the Company's website
at www.jaderoadinvestments.com and follow the Company on Twitter
(@JadeFinance).

FOR FURTHER INFORMATION, PLEASE CONTACT:

 Jade Road Investments Limited                      +44 (0) 778 531 5588
 John Croft

 WH Ireland Limited - Nominated Adviser             +44 (0) 20 7220 1666
 James Joyce
 Andrew de Andrade

 Hybridan LLP - Corporate Broker                    +44 (0) 203 764 2341
 Claire Noyce

 Lionsgate Communications - Communications Adviser  +44 (0) 779 189 2509
 Jonathan Charles

 

About Jade Road Investments

Jade Road Investments Limited is quoted on the AIM Market of the London Stock
Exchange and is committed to providing shareholders with attractive
uncorrelated, risk-adjusted long-term returns from a combination of realising
sustainable capital growth and delivering dividend income.

 

The Company is focused on providing growth capital and financing to emerging
and established Small and Medium Enterprises (SME) sector throughout Asia,
well-diversified by national geographies, instruments and asset classes. This
vital segment of the economy is underserved by the traditional banking
industry for regulatory and structural reasons.

 

The Company's investment manager, Harmony Capital, seeks to capitalise on its
team's established investment expertise and broad networks across Asia.
Through rigorous diligence and disciplined risk management, Harmony Capital is
dedicated to delivering attractive income and capital growth for shareholders
with significant downside protection through selectively investing in assets
and proactively managing them.

 

Harmony Capital is predominately sourcing private opportunities and continues
to create a strong pipeline of attractive income-generating assets from
potential investments in growth sectors across Asia, including healthcare,
fintech, hospitality, IT and property. 

 

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

 

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