Keybridge Capital Limited

Media Releases

Company Update
3 December 2013

Keybridge NTA (unaudited) 22.4 cents per share compared with 19.0 cents per share last announced
Company considering a share buyback and other capital management options
Oceania Capital Partners Limited (OCP) launches a takeover bid at 16.0 cents per share
Directors strongly recommend shareholders to take no action regarding the bid at this time
Directors have appointed lawyers to review OCPís bid and disclosure information
Company will provide a formal response to the bid in due course

NTA per share

Keybridge advises that its current unaudited Net Tangible Assets (NTA) is 22.4 cents per share compared with 19.0 cents per share last announced. The principal reason for the change in NTA is due to Keybridge no longer being required to consolidate the financial position of PR Finance Group (PRFG), as a result of the appointment of an Administrator to PRFG on 21 October 2013. All debts owed by PRFG to third parties remain non-recourse to Keybridge.

Share Buyback

Keybridge has a current cash balance of $20.5 million, a current market capitalisation of $28.8 million and an NTA with a current estimated value of $39.1 million. The Company also has approximately $201 million in usable tax losses and $8.1 million in franking credits, which are not currently included in the NTA calculations. Directors have been considering a share buyback (as announced on 7 November 2013) or alternative capital management initiatives using its cash that may improve the value per share of the Company and provide liquidity options for shareholders that desire such options. These discussions are continuing notwithstanding the bid for the Companyís shares announced by OCP.

OCP Bid at 16.0c per share

KBC has received a takeover bid from OCP for all the shares it does not already own at 16.0 cents per share. KBC has appointed lawyers to review the bidderís statement lodged with the Company on 28 November 2013 and will consider the making of an application to the Takeovers Panel should there be any deficiencies in the bid which require Panel involvement to rectify.

In any case, the Directors strongly recommend that shareholders take no action in relation to the OCP Offer until directors issue KBCís targetís statement which will contain their formal recommendation to shareholders and an independent expertís report on whether the bid is fair and reasonable.

Alternative Approaches

Since the bid was made by OCP, Keybridge has received enquiries from shareholders and other credible parties regarding potential alternative transactions to the OCP bid. To date these transaction discussions are preliminary in nature. The Company will continue these discussions and provide an update as appropriate in due course.

Keybridge Capital is a financial services company that has invested in, or lent to, transactions which predominantly are in the core asset classes of property, aviation, finance receivables, shipping and infrastructure.

For further information, please contact:

Nicholas Bolton
Executive Director
Tel: +61 2 9321 9000
Adrian Martin
Chief Financial Officer
Tel: +61 2 9321 9000