JUPITER ASSET MANAGEMENT LIMITED (JAM), THE INTERNATIONAL INVESTMENT MANAGEMENT COMPANY, TODAY (19 JULY 1995) ANNOUNCED THE LAUNCH OF THE EAST EUROPEAN FOOD FUND (THE FUND) IN ASSOCIATION WITH THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD) AND COMMERZBANK AG.
THE FUND'S MAIN OBJECTIVE IS TO UNDERTAKE EQUITY AND EQUITY-RELATED INVESTMENTS IN FOOD AND BEVERAGE COMPANIES IN CENTRAL AND EASTERN EUROPE AND THE FORMER SOVIET UNION.
THIS IS THE FIRST JOINT ACTIVITY BETWEEN JAM AND COMMERZBANK AG SINCE COMMERZBANK AG ACQUIRED JUPITER TYNDALL GROUP PLC, JAM'S PARENT COMPANY, EARLIER THIS YEAR.
THE FUND, WHICH IS A CLOSED END INVESTMENT COMPANY ESTABLISHED AS SOCIETE D'INVESTISSEMENT A CAPITAL FIXE (SICAF) IN LUXEMBOURG, HAS SO FAR ATTRACTED APPROXIMATELY USDOLLARS 80 MILLION FROM INSTITUTIONAL INVESTORS. THE FUND IS ONE OF THE BIGGEST LAUNCHES OF AN INVESTMENT COMPANY OF THIS KIND BY A UK BASED INVESTMENT MANAGER THIS YEAR.
EBRD WILL SUBSCRIBE 20 PER CENT OF THE FUND'S TOTAL CAPITAL. THE REMAINING CAPITAL WILL BE COMMITTED BY OTHER INSTITUTIONS. THE RT HON NORMAN LAMONT MP, THE FORMER CHANCELLOR OF THE EXCHEQUER, WILL BE CHAIRMAN OF THE FUND.
THE FUND WILL BE MANAGED BY JAM, THE EUROPEAN FUND MANAGEMENT DIVISION OF JUPITER TYNDALL GROUP PLC, WHICH HAD ASSETS UNDER MANAGEMENT OF USDOLLARS 6.7 BILLION AS AT 31ST MAY 1995. JUPITER TYNDALL HAS A STRONG TRACK RECORD FOR MANAGING SPECIALIST INVESTMENT COMPANIES.
JAM WILL BE ADVISED BY CENTRAL EUROPE TRUST COMPANY LIMITED, THE LARGEST STRATEGIC CONSULTANCY FIRM SPECIALIZING IN INVESTMENT IN CENTRAL AND EASTERN EUROPE AND BY COMMERZ INTERNATIONAL CAPITAL MANAGEMENT GMBH, A SUBSIDIARY OF COMMERZBANK AG.
THE MAJORITY OF THE INVESTMENTS MADE BY THE FUND WILL BE IN UNLISTED COMPANIES ISSUING SHARES THROUGH PRIVATE PLACEMENTS AND IN PRIVATIZATIONS. THE BALANCE WILL BE INVESTED IN LISTED SECURITIES.
JOHN DUFFIELD, CHAIRMAN OF JAM, COMMENTED: WE BELIEVE THAT THERE ARE EXCELLENT OPPORTUNITIES FOR INVESTMENT IN THE FOOD SECTOR IN EASTERN EUROPE. WE ARE VERY PLEASED WITH THE INITIAL RESPONSE FROM INSTITUTIONS. TO RAISE USDOLLARS 80 MILLION IN THE CURRENT INVESTMENT CLIMATE IS A CONSIDERABLE ACHIEVEMENT AND WE ARE DELIGHTED TO HAVE DONE THIS IN CONJUNCTION WITH EBRD AND OUR NEW PARENT, COMMERZBANK.
JACQUES DE LAROSIERE, PRESIDENT OF THE EBRD, SAID: "THE FUND WILL PROVIDE EBRD WITH A VEHICLE TO TARGET SMALL AND MEDIUM-SIZED FOOD SECTOR COMPANIES AND WILL STIMULATE JOINT VENTURES AND OTHER INVESTMENT BY WESTERN FOOD, BEVERAGE AND AGRIBUSINESS COMPANIES, IN ADDITION TO INVESTMENT BY FINANCIAL INVESTORS. IT WILL ALSO FACILITATE THE TRANSFER OF TECHNICAL AND FINANCIAL KNOW-HOW TO FOOD SECTOR COMPANIES IN CENTRAL AND EASTERN EUROPE".
THE EBRD WAS SET UP IN 1991 TO ASSIST THE COUNTRIES OF EASTERN AND CENTRAL EUROPE AND THE FORMER SOVIET UNION IN THEIR TRANSITION TO MARKET ECONOMIES. AS ONE OF ITS OBJECTIVES, THE EBRD SEEKS TO MOBILIZE EQUITY CAPITAL IN ITS COUNTRIES OF OPERATIONS THROUGH INVESTMENT FUNDS. TO DATE, THE EBRD HAS INVESTED APPROXIMATELY ECU 370 MILLION IN 25 SUCH FUNDS.
INQUIRIES
PHILIP BUTT JUPITER ASSET MANAGEMENT - 0171 412 0703
LUCAS VAN PRAAG BRUNSWICK - 0171 404 5959
VERONIQUE CASSEGRAIN EBRD - 0171 338 7237