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12 April 2011.

IFU CAN INVEST IN THAILAND AGAIN

IFU will reopen for co-investments with Danish companies in Thailand. This has been made possible following a decision by the Danish government to increase the Fund's focus on emerging markets.

IFU has made investments in Thailand since 1975. However, in 2009 IFU had to stop making new investments in the country because Thailand had surpassed the income limit regulating which countries IFU can invest in.

The Danish government has now doubled the income limit, and Thailand is among the 26 countries being reopened.

“Thailand is a promising market with a solid potential for Danish businesses, and I hope that IFU’s re-entry will increase the interest and investments by Danish companies in the country,” says Finn Jønck, Managing Director of IFU.

Until 2009, IFU had participated in the establishment of 28 companies in Thailand. IFU is still engaged in 12 of these and has kept track of developments in Thailand’s business community despite the temporary stop for new investments.

“Our knowledge of investing in Thailand is intact, and therefore we will be ready to assist Danish companies from day one,” says Jens Bayer, Senior Investment Manager of IFU, who has more than 25 years of experience from setting up companies in Thailand.

IFU can offer both advice and financing to Danish companies wanting to set up business in developing countries and emerging markets in Asia, Africa and certain parts of Latin America. IFU’s investments are made on commercial terms in the form of share capital and loans and are made directly in a company established in the host country.

As an investor IFU is prepared to share the financial risk with a Danish company, and normally IFU is involved from the first step through the establishment and set-up of the company until it is fully consolidated. Often IFU is also represented on the board of the company.

In addition to IFU’s own investment managers, the Fund can also draw on an extensive network of external advisers who typically have past experience from being a CEO of a company in the country in question. In Thailand, IFU has two external advisers: Leo Emdal Alexandersen and Poul Weber.

“Our cooperation with IFU is a perfect match. They have the expertise in setting up companies and can contribute financing, and as external advisers we have deep insight into running a business in Thailand,” says Leo Emdal Alexandersen.

In the past, IFU has co-invested in Thailand with large companies such as Carlsberg, Georg Jensen and Royal Copenhagen. However, a number of medium-sized companies like Styromatic, Flux Transformerteknik and Varo have also benefitted from cooperating with IFU.

Companies interested in learning more about IFU are welcome to contact Peter Schwalbe, Department Director, by e-mail to psc@ifu.dk or by phone +45 33 63 75 45.