C-Quadrat to Acquire UK Fund Management Company

C-Quadrat Investment AG announces that a term sheet was signed on the possible acquisition of 100% of the shares in BCM (Luxembourg) SA and thus on the direct or indirect acquisition of 100% of the shares in the UK Fund Management Company BCM & Partners LLP ("BCM-Group").

BCM-Group is a London domiciled independent Asset Manager with focus on Credit Funds (Convertible Funds, High Yield Funds), Multi Asset Class Funds und Fund of Funds. Currently BCM-Group manages assets of approximately € 800m.

The purchase price, which is subject to negotiations, would be an amount corresponding to approximately 10% of the market capitalization of C-Quadrat. It is further intended to agree on a price-adjustment-clause, which could become effective after 3 ¾ years and could lead to an increase or a reduction of up to 30%. C-Quadrat plans to finance the intended takeover with equity, partially with treasury shares, as well as with debt.

With this intended acquisition C-Quadrat aims at the continuation of its strategy of continuous growth in Asset Management as its core business and the increase of diversification of its current product range.

Subject to completion of due diligence to the satisfaction of C-Quadrat and successful negotiation of the transaction documentation, the parties aim at a signing of the transaction still in July 2012.

The possible transaction requires board approvals by the contracting parties and post-signing the fulfillment of conditions precedent including approvals by the UK Financial Services Authority (FSA), London. In today's extraordinary board meeting C-Quadrat's supervisory board has basically agreed on the possible acquisition.