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RCI - Exited Investments

Állami Nyomda Rt


www.allaminyomda.hu

Allami Nyomda Rt. ("Allami") is the leading Hungarian security printer. Allami has four lines of business: plastic card solutions, document security solutions, electronic document management and bulk transactional printing. RCI invested in the Hungarian media group Lang Kiado & Holding in December 2000. In 2003, Royalton Partners initiated the demerger of the original holding company into two new groups - Lang Kiado & Publishing and Holding and Lang Security Technology Holding. RCI held 45% of both companies. Lang Security Technology Holding owned 76% of Állami. In December 2005, Allami was listed on the Budapest Stock Exchange. RCI sold 67% of its interest in the initial public offering. The remaining RCI shares were sold in a block trade on the Budapest Stock exchange in December 2006. RCI achieved an exit multiple of 3.8x on this investment.


Lang Kiado & Holding Rt.


Lang Kiado & Holding Rt. was the holding company for several companies that specialize in two areas: (i) educational services and publishing and (ii) print media.

RCI invested in the Hungarian media group Lang Kiado & Holding in December 2000.In 2003, Royalton Partners initiated the demerger of the original holding company into two new groups - Lang Publishing and Holding and Lang Security Technology Holding. RCI held 45% of both companies.

Royalton Partners introduced a strategy to shift the focus of Lang Kiado & Holding from mature, stable businesses to high growth, high multiple areas. Lang Holding initially consisted of a printing and magazine publishing business. The cash flows from the printing division were leveraged to redirect the business into the educational media space. Perfekt was acquired in 2002, and NTK, the national textbook publisher, was acquired in 2005 from the Hungarian government in a leveraged privatization transaction. I

n March 2006, the shareholders of Lang Kiado & Holding entered into an agreement to sell the educational business to a Finnish media group Sanoma. The company was fully exited in November 2008. RCI achieved an exit multiple of 1.8x on this investment.


Ella Bank


www.elsolakashitel.hu

Elsö Lakáshitel ("Ella Bank") offers mortgage financing to retail customers in Hungary and denominated in Hungarian Forints or foreign currencies.

RCI owned 87% of the shares in Ella Bank's Luxembourg holding company between 2002 and 2007.

Royalton Partners transformed what was a limited savings and loans cooperative into a bank focused on mortgage lending. Ella Bank received a full banking license and developed an innovative marketing strategy, targeting young, family-oriented, professional customers. Execution of this business plan started in 2003. Since then, it has consistently performed ahead of targets, becoming the fastest growing bank in the Hungarian mortgage market.

In March 2007, RCI sold its shareholding in the bank to the French financial group AXA. The exit multiple reached 3.9x of originally invested capital.

 

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