Ad-hoc | 1 July 2011 06:30
NEW VALUE AG / Key word(s): Final Results
01.07.2011 06:30
Release of an ad hoc announcement pursuant to Art. 72 KR
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New Value is committing itself to bringing its portfolio companies to
advanced stages of corporate development and then realizing the full value
of these investments. The ultimate objective of this value realization
strategy over the next several years is to channel the company's net asset
value and the potential value of its existing investment portfolio to its
shareholders. As a result of this strategic realignment, New Value will
lower its operating costs significantly and redefine its collaboration with
its Investment Advisor.
After a thorough review of the company's investment strategy, portfolio
structure and investment tools, the Board of Directors of New Value has
decided to concentrate the company's activities on advancing the
development of its existing portfolio investments. Current company
resources will be used exclusively to further the development of the
portfolio's ten high-growth companies active in promising areas of
cleantech and healthcare. 3S Industries AG is a good example of how having
a direct influence on company strategy can be decisive in promoting a
company's successful development. Active and intensive mentoring and
guidance as well as rapid and efficient implementation of corporate
development are crucial aspects in this regard.
This decision by New Value has been taken in response to growing investor
skepticism toward the organizational form of a listed investment company,
which is reflected, among other ways, in an excessively large discount
between the market capitalization of an investment company and the net
asset value of its investments. During the past two years this discount has
generally ranged between 40% and 50%. New Value intends to optimize the
potential value of its current investments over the next three to four
years and then realize this value through successful exits. As a result of
this strategic realignment, New Value's operating costs will be
significantly lower after the end of 2011, which will further optimize the
flow of returns to shareholders. Buying back shares during periods of high
discounts will also serve as a means of increasing NAV per share. The
company expects to pay out the proceeds of investment disposals to
shareholders without any discount effect during the coming three to four
years - whenever possible as tax-exempt repayments of capital
contributions.
Internal organizational structures were also reviewed in connection with
the change in strategy. The Board of Directors and the Investment Advisor
EPS Value Plus AG have agreed to terminate the advisory mandate at the end
of 2011 and to collaborate on a project-oriented basis from 2012 on. Rolf
Wägli is stepping down from the Board of Directors of EPS Value Plus AG and
selling his shares in the company to focus on New Value. In future the well
qualified directors of the portfolio companies will assume more
responsibility than before in providing strategic support to company
executives and during the execution of exit strategies. New Value will
provide its existing portfolio companies with selective support in the form
of know-how, networking services and growth capital. In particular, New
Value will increase its efforts to ensure the election of highly qualified
representatives to the Boards of Directors of its portfolio companies.
General meeting offers insights into solar technology
The Board of Directors will explain its strategy in detail at the Annual
General Meeting on August 17, 2011. The Annual General Meeting will take
place at the solar module production facility being built by Solar
Industries AG (interest held by New Value: 32.8%) in Langenthal and it will
also be an opportunity to learn more about this attractive project and the
growth plans of Solar Industries AG. High-volume production of photovoltaic
modules is scheduled to begin in Langenthal in 2012.
Click on the following link to view New Value AG's annual report for the
year ended March 31, 2011:
http://www.newvalue.ch/fileadmin/userupload/dokumente/GB_2010-2011-Web.pdf
Information about New Value AG
New Value is the pioneer for sustainable direct investments in young and
rapidly growing Swiss companies. New Value, listed on SIX Swiss Exchange,
invests directly in promising private companies in Switzerland and Germany
with substantial market and growth potential. New Value provides growth
capital to fund the innovative business models of these companies and
guidance in advancing their corporate development. The portfolio is
invested in companies at different stages of development, ranging from the
market launch phase to medium-sized enterprises with stable profits. The
portfolio consists of companies active in the Cleantech and Healthcare
sectors. New Value is committed to sustainability and attaches great
importance to ethical business concepts and good corporate governance.
01.07.2011 News transmitted by EquityStory AG.
The issuer is responsible for the contents of the release.
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Language: English
Company: NEW VALUE AG
Bodmerstrasse 9
8027 Zürich
Schweiz
Phone: +41-43-344 38 38
Fax: +41-43-344 38 39
E-mail: info@newvalue.ch
Internet: www.newvalue.ch
ISIN: CH0010819867
Swiss Security Number: 552932
Listed: Freiverkehr in Berlin, Düsseldorf, München,
Stuttgart; Open Market in Frankfurt; SIX
End of Announcement EquityStory News-Service
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