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Ad-Hoc announcement pursuant to Art. 53 Listing Rules
Zug, August 25, 2022
EEII AG publishes half year results as of June 30, 2022.
EEII is reporting a loss of CHF 6,016 million in the first half of 2022 (H1 2021: profit of CHF 2,454 million). The value of Gazprom ADRs – the only remaining portfolio investment – had been massively impaired due to the Russian invasion into Ukraine, in the course of the first six months. The net asset value of the EEII shares (“NAV”) amounted to CHF 0.68 at the end of June 2022, corresponding to a performance of -83 % for 1H2022. The Gazprom ADRs have been converted into regular Gazprom shares listed on the Moscow Stock Exchange.
The act and consequences of the Russian invasion of Ukraine on February 24, 2022, in combination with the international sanctions and legal measures enacted against the Russian Federation were unforeseeable and the consequences beyond any known measures. The tradability and immediate access to the Company’s Gazprom investment has been put on hold. However, on the Moscow Stock Exchange, Gazprom shares were trading with a value of RUB 200, as of June 30, 2022, i.e. approximately $3.50, which is a fair indication of the share value.
After the reporting date, the Gazprom ADRs were cancelled and EEII has subsequently been forced, but also been able, to convert the Gazprom ADRs into 1’485’600 ordinary Russian shares of Gazprom PJSC. It remains unclear how these shares can be traded and/or sold in the future, but as of the date of this announcement, the value for the position as reported by its custodian amounts to CHF 4’358’702, bringing the NAV of the Company back to CHF 3.23.
The Board of Directors is working intensely on a solution regarding the future of the Company and will inform about further steps in a timely manner.
The entire half year results 2022 are available using the web-link –https://www.eeii.ch/reports/2022/ for a data download.
Further information:
Marcus H. Bühler, CEO (Tel: +41-44-552 43 43).
EEII is quoted at Swiss Exchange (SIX) (Bloomberg: EEII SW Equity).