ARCH Arc Capital

TIDMARCH

RNS Number : 0255O

ARC Capital Holdings Limited

01 August 2014

ARC Capital Holdings Limited

Update on Suspension

At the request of the Board of ARC Capital Holdings Limited ("ARCH") (AIM: ARCH), trading of ARCH's securities on AIM was suspended with effect from 13:15pm on 24 July 2014 pending the release of ARCH's unaudited net asset value ("NAV") as at 30 June 2014. The inability of the Valuation Committee of ARCH to determine the NAV as at 30 June 2014 is set out in ARCH's announcement dated 24 July 2014.

A further announcement was made by ARCH on 30 July 2014 to provide an update to its shareholders in respect of the sale of ARCH's equity stake in Fortress Group Limited ("FGL"), held through its wholly owned subsidiary, ARCH Digital Holdings Limited ("ARCH Digital").

Capitalised terms used but not defined in this announcement have the same meanings as set out in ARCH's announcements dated 24 July 2014 and 30 July 2014.

As set out in ARCH's announcement dated 30 July 2014, ARCH has sought from FGL through ARCH Digital, information regarding the FGL Sale. As of the time of this announcement, ARCH has not yet been provided with the requested information in respect of FGL Sale.

ARCH Digital's representative on the Board of FGL, Mr Cosimo Borrelli, has been provided with copies of the executed transaction documents in respect of the FGL Sale. Despite two requests made by Mr Borrelli directly to the Chairman of FGL, Mr Weijian Shan (also Chairman and CEO of PAG Asia Capital), and FGL's legal advisor in respect of the FGL Sale, Freshfields Bruckhaus Deringer ("Freshfields"), both Mr Shan and Freshfields are yet to advise Mr Borrelli when the FGL Sale was purportedly completed and what has happened with the sale proceeds.

In light of the confidentiality requirements contained in the transactions documents in relation to the FGL Sale, Mr Borrelli is not in a position to disclose the terms of the FGL Sale at this stage.

On the basis of all the information currently available to Mr Borrelli and the uncertainty associated with what has transpired in respect of the FGL Sale in recent days, Mr Borrelli has recommended the Valuation Committee of ARCH to consider a material adjustment to the fair value of ARCH's equity interest in FGL.

The Valuation Committee is considering Mr.Borrelli's recommendation and weighing the implications.

For the avoidance of any doubt, the Board of ARCH has instructed legal advisors to consider all its options in respect of the FGL Sale and matters associated with it.

A further announcement will be made in respect of any material developments on this matter.

For more information please contact:

ARC CAPITAL HOLDINGS LIMITED:

Steve Feniger, Chairman of the Board

E: steve.feniger@gmail.com

Cosimo Borrelli

Managing Director, Borrelli Walsh Limited

Consultant to the Board

T: (852) 3761 3800

E: cb@borrelliwalsh.com

NOMINATED ADVISER:

Philip Secrett, Grant Thornton UK LLP

T: (44) 20 7383 5100

E: Philip.J.Secrett@uk.gt.com

BROKER:

David Benda / Hugh Jonathan, Numis Securities Limited

T: (44) 20 7260 1000

E: d.benda@numiscorp.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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