Euroventures Ukraine gets into a strategic partnership

August 21, 2006

Euroventures Ukraine was instrumental to get one of its portfolio company Abikelly Limited – traded as Budmax (the Ukrainian chain of construction materials supermarkets) - into a strategic partnership with a foreign investor. Under an arrangement with such a strategic investor EVU has received an option to fully divest from this investment with Gross IRR of 28%.

Commenting the decision of investors, Leslie Hawrylyshyn, co-managing partner of Euroventures Ukraine, said, that the market of construction materials distribution has become increasingly competitive due to foreign groups entering to develop comparatively large-scale distribution chains in Ukraine. Euroventures Ukraine Fund I cannot invest, on its own, more money to the company for it to sustain in this fast-growing competitive environment. A strategic investor will contribute more to value created by Euroventures management since its original investment in Budmax LLC.