Investment of Global Finance in a multinational company with heavy exposure in the Russian market

GLOBAL FINANCE has completed a syndicate deal leading to the participation in the share capital of ASBISC Enterprises Limited. The Company specializes in the wholesale distribution of PC components, storage, networking and server architectures, operating primarily in the emerging markets of Eastern Europe.

GLOBAL FINANCE was responsible for the general coordination, structuring and closing of the deal, and for raising total funds of $10 million. The BLACK SEA FUND of GLOBAL FINANCE has invested $6 million, and ALPHA EQUITY FUND of ALPHA VENTURES has invested the remaining $4 million.

ASBISC Enterprises Limited commenced operations in 1990 in Minsk Belarus and today it has a distribution network covering 19 countries in the geographical area of the Former Soviet Union and Central and Eastern Europe, placing it as the leading regional wholesale IT distributor. Since 1995 its headquarters has been relocated to Limassol, Cyprus. The Management of the Company consists of the founder and major shareholder Sergei Kostevitch, and from executives coming from multinational IT companies such as Intel and Seagate.

The low penetration of PCs coupled with the expected improvement of the economies of emerging markets promises an exceptional growth trajectory for the Company. For fiscal year 2001 it had sales of $379 million, profit before interest taxes and depreciation of $9.9 million, and earnings after taxes of $7.5 million. According to the Company's business plan its top-line is expected to grow at an average annual pace of 25% for the next five years, while its profits before interest taxes and depreciation to improve considerably due to economies of scale and increased purchasing power.

The new capital raised is earmarked for working capital requirements to fuel the Company's explosive growth.

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