Dragon Capital and East Capital Bering Ukraine Fund Acquire 70% Stake in Chumak - One of Ukraine´s Top Consumer Brands

17/03/2008 - 12:35

Investment bank Dragon Capital and East Capital Bering Ukraine
Fund jointly acquire a 70% stake from Chumak´s co-founder, Professor
Hans Rausing. Chumak is the largest tomato processing company in
Central and Eastern Europe and one of Ukraine´s top brands.

Dr. Tuve Johannesson, representing Professor Hans Rausing,
comments: "Dragon Capital was selected as an advisor and core investor
in this transaction to divest our share in Chumak. Chumak represents
one of our most successful direct investments into the former Soviet
Union, thus the company´s further success and strong shareholder
support are very significant to us. The Rausing family is very pleased
that this agreement has been reached with two very successful and
experienced investors such as Dragon Capital and East Capital. Their
proven local knowledge and international approach make us feel
confident that they will ensure - together with the founders - that
Chumak remains leader in the vegetable business in Ukraine and
continues to play an important role as responsible corporate citizen
and role model in Kakhovka, Kherson Region".

Brian Best, Dragon Capital´s Managing Director of Investment
Banking, says: "Chumak is one of the strongest FMCG brands in Ukraine
with a unique supply chain and production platform combined with
strong local consumer knowledge. We see excellent opportunities,
especially in the agricultural division, and we will continue to
aggressively expand the company together with its founders and East
Capital. We plan significant equity and debt capital raising on
foreign markets to make this happen."

Carl Sturen, co-founder and Managing Director of Chumak, comments:
"First of all, our organization, my partner Johan Boden and I want to
thank Professor Rausing for the past 12 years of successful
cooperation. As co-founders of Chumak, the staying shareholders and
management, Johan and I welcome our new partners and look forward to
continue our growth together in the rapidly developing Ukrainian and
neighboring markets".

"Chumak is a fantastic entrepreneurial company that we met already
in 1997. Very early on Chumak realized and seized the opportunity in
the dynamic Ukrainian market - known as the ´bread basket´ of the
former Soviet Union. We see a lot of renewed opportunities in the fast
growing food and agricultural sectors", says Aivaras Abromavicius,
Partner at East Capital.

CHUMAK

Chumak is one of Ukraine´s most famous food companies, known for
its expertise in processing and marketing natural high-quality food
products made in Kherson region, Ukraine´s agricultural heartland
located near the Black Sea coast. The company is one of the largest
producers of ketchup, mayonnaise, sauces, canned vegetables and pasta
in Ukraine. Chumak, established in 1996 by two Swedish businessmen,
Carl Sturen and Johan Boden, sells its products under the brand
Chumak.

www.chumak.com

DRAGON CAPITAL

Dragon Capital is Ukraine´s largest securities brokerage,
investment banking, private equity and asset management firm offering
a full range of services to institutional, corporate and private
clients. Established in 2000, the company is an independent
partnership controlled by management, with a minority stake held by
Goldman Sachs. The firm has completed 22 IPOs for Ukrainian companies
since 2005, raising $1.5bn. Dragon´s asset management arm has $1bn
under management.

www.dragon-capital.com

EAST CAPITAL AND EAST CAPITAL BERING UKRAINE FUND

Founded in 1997, East Capital is a leading, independent asset
manager specialising in Eastern European financial markets. The
company, which is headquartered in Stockholm, with offices in European
capitals, actively manages over EUR 5.7bn, basing its investment
strategy on thorough knowledge of the markets, fundamental analysis
and frequent company visits by its investment teams.

The aim of the East Capital Bering Ukraine Fund is to achieve
long-term capital appreciation from investments in Ukrainian equities,
both listed and unlisted. Investments in the Fund are closed for four
years.