The fair value (intrinsic value) of one registered share of Private Equity Holding AG stood at CHF 131.70 as of March 31, 2003, not taking into account the effects from the refinancing transaction. The refinancing of the company necessitated additional write-downs of the portfolio as investments are sold to CSFB at a discount to fair value; the adjusted fair value per share, taking into account the effects from the transaction, therefore amounted to CHF 60.46. Over the two month period ended May 31, 2003, the fair value showed a further decline to CHF 57.34 per share.
The development of the fair value, share price and discount (share price versus fair value) of one registered share of Private Equity Holding AG in the reporting year is shown below:
|
Date |
Fair Value |
Share Price |
Discount |
|
before CSFB transaction |
|
|
|
|
31.3.03 |
131.70 |
12.50 |
91% |
|
after CSFB transaction |
|
|
|
|
31.3.03 |
60.46 |
12.50 |
79% |
|
30.4.03 |
59.77 |
16.20 |
73% |
|
31.5.03 |
57.34 |
17.05 |
70% |
Private Equity Holding AG (SWX: PEHN), managed by Swiss Life Private Equity Partners Ltd., offers investors the opportunity to invest, within a simple legal and tax optimized structure, in a broadly diversified and professionally managed private equity portfolio. For further information: www.peh.ch or Eva Kalias, Investor Relations and Communications (phone +41 41 726 79 80).
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Basis of the fair value calculation and disclaimer
The number of outstanding shares used for calculation of fair value per share amounted to 4,356,503 as of May 31, 2003 (April 30, 2003: 4,356,503). The calculations are prepared in accordance with International Financial Reporting Standards (IFRS) and pursuant to the guidelines of the European Venture Capital Association (EVCA). The fair values of the fund investments are based on the most recent report of the latest NAV (net asset values) as reported by the funds. Unlisted direct investments are rated at fair values. The fair value of listed direct investments is the market value. Based on a composite assessment of all appropriate and applicable indicators of fair value, Private Equity Holding AG makes a good faith estimate of the fair value as of the valuation date. The fair values are calculated under a going concern assumption. The fair value of Private Equity Holding AG is computed as of the end of each month and published four trading days after the cut-off date. The different reporting cut-off dates of the individual companies and funds in which participations are held can lead to short-term distortions and cause discrepancies between the published fair value and the actual total value of Private Equity Holding AG's net assets.