Estonia, EU – Baltic States, Financial Services, Funds, Investments, Markets and Companies

Monday's extraordinary general meeting decided to end the investment agreement with East Capital. The decision is to enter into force in ten days, and East Capital Explorer is to develop its investment activities and launch a share buyback program, the fund told the stock exchange.

East Capital Explorer's costs are to decrease 3.5-4 times this year. In addition, all management costs previously paid to East Capital are to end, except the ones connected to East Capital Baltic Property Fund II and East Capital Baltic Property Fund III since real estate is part of the strategic focus of the fund.

According to the plan the in-house investment activities of East Capital Explorer are to be headed by Kestutis Sasnauskas, who is at present the head of private equity and real estate at East Capital. His key task would be to develop the company's investment activities.

"East Capital Explorer and East Capital have agreed that the investment agreement should be terminated, whereby East Capital Explorer can become a fully independent investment company. This is a big step, but I am convinced it would be for the benefit of the company as well as our shareholders," CEO of East Capital Explorer Mia Jurke said in a press release in February.

"Terminating the agreement would mean that we will build our own in-house investment organization, more cost efficient and clearly adapted to our needs and strategic direction. It would also mean, we believe, that East Capital Explorer will be a more transparent company going forward," she added.

The assets manager by East Capital Explorer totaled 254 million euros at the end of 2015. Last year the fund earned 7.3 million euros of profit. The fund owns Starman and Trev-2 Grupp in Estonia.