TIDMRC2 
 
RNS Number : 9978K 
Reconstruction Capital II Ltd 
29 April 2010 
 

                        Reconstruction Capital II Limited 
                            ("RC2" or the "Company") 
 
                                                                   29 April 2010 
 
RC2 increases its shareholding in East Point Holdings Limited ("EPH" or the 
"Group") by exchanging claims against EPH's founding shareholders for additional 
shares 
RC2 is pleased to announce that it has increased its shareholding in EPH from 
21.33% to 42.00% as a result of exchanging claims against EPH's founding 
shareholders for an additional shareholding in the Group. 
Under RC2's original investment agreement, RC2 had the right to put its shares 
in EPH back to EPH and its founding shareholders (the "Put Option") if a 
reorganisation of the Group into its various business lines (the 
"Reorganisation") had not taken place by 8 December 2009. 
Because EPH was unable to complete the required Reorganisation in due time, RC2 
was able to exercise the Put Option and did so as a protective measure in early 
2010. Following this exercise, RC2 commenced negotiations with the Group and, 
after examining all options and with particular regard to the difficulties in 
monetising the claim derived from the Put Option, RC2 determined that the most 
beneficial solution for its shareholders was to exchange its claim for 
additional shares in EPH. 
At the same time, Darby Converging Europe Mezzanine Finance Limited ("Darby"), a 
principal investment fund, has agreed to swap a mezzanine facility provided to 
another affiliate of the Group for a 24.67% shareholding in EPH. Darby is the 
private equity arm of the Franklin Templeton Investments Group of the USA. 
 
Following the above transactions the new shareholding structure of EPH is: 
 
RC2:                42.00% 
Darby:             24.67% 
Founders:          33.33% 
RC2's original investment in EPH amounted to EUR 30 million and, based on an 
independent valuation last year, this was written down to EUR 18m to reflect 
changed market conditions. RC2 has now commissioned a new valuation of EPH to 
reflect the current business environment and the Group's latest financial 
results, as well as Darby's conversion of its mezzanine debt into equity.  It is 
expected that the new valuation of this investment will be included in the May 
monthly NAV statement, which will also reflect RC2's higher shareholding in EPH. 
 
Ion Florescu, a director of RC2, commented: "We are pleased to continue our 
partnership with the founders of EPH and welcome Darby as a new shareholder. 
This move will more closely align the interests of the two funds. Since the 
entry of RC2 into the Group, substantial progress has been made to reorganize 
EPH along its business lines, improve corporate governance and prepare its 
various businesses for exits. RC2 and its partners in this investment intend to 
build up shareholder value by continuing to work on these objectives." 
 
Robert D. Graffam, Senior Managing Director of Darby, commented "We are pleased 
to be joining RC2 and the Founding Shareholders as a major stakeholder in EPH, a 
prominent Group operating many attractive businesses throughout Central and 
Southeast Europe." 
 
For further information, please contact: 
Reconstruction Capital II Limited 
Ion Florescu 
Tel: +44 (0) 207 244 0088 
 
Grant Thornton Corporate Finance (Nominated Adviser) 
Philip Secrett / Robert Beenstock 
Tel: +44 (0) 20 7383 5100 
 
LCF Edmond de Rothschild Securities (Broker) 
Hiroshi Funaki / Claire Heathfield 
Tel: +44 (0) 20 7845 5960 
 
 
About EPH 
 
Founded in 1990, EPH is a Cyprus-based holding company with significant business 
interests across South East Europe, primarily Serbia and Romania. Based on the 
audited consolidated accounts, in 2008 the Group recorded sales of EUR 426.1m 
and an operating profit of EUR 9.9m. EPH operates along the following main 
business lines: 
 
·     Agribusiness: the Group is a specialist trader in agricultural products 
across South East Europe, and has built up a network of agricultural storage 
facilities along or near the Danube, including a flagship silo in the port of 
Constanta. 
 
·     Milling: the Group owns two wheat and one corn flower mill all of which 
are based in Serbia and include cereal storage facilities. 
 
·     Bakeries: the Group owns a controlling stake in Klas DOO, the largest 
industrial bakery group in Serbia including a network of retail shops and 
several production sites across the country. 
 
·     Copper Processing: EPH owns a controlling stake in Valjaonica Bakra 
Sevojno AD, Serbia's biggest copper processor. 
 
·     Cable Production: EPH acquired a 93% stake in Novkabel AD, Serbia's second 
largest cable producer in early 2009. 
 
·     River Shipping: In 2007, EPH acquired DDSG-Cargo (now renamed Erste 
Donau-Dampfschiffahrts-Gesellschaft m.b.H.), an Austrian river shipping company 
which dates back to 1829 with 265 vessels operating along the Danube. 
 
·     Real Estate: The Group owns a number of properties in various countries 
and plans to redevelop some of its operating industrial assets as residential 
and commercial projects. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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