Further investments
13 March 2008 - 6:04PM
UK Regulatory
RNS Number:9834P
Origo Resource Partners Limited
13 March 2008
13 March 2008
Origo Resource Partners invests in Fomento International Ltd and Staur Aqua
Origo Resource Partners Limited ("ORP" or "the Fund") announces the successful
completion of its third and fourth investments. ORP has agreed to invest up to
US$20 million in Fomento International Ltd ("FIL") and approximately US$1
million in Staur Aqua A/S ("Aqua").
Investment in FIL
The Fomento group is a leading Indian privately held vertically integrated
mining group with operations in the iron ore rich states of Goa, Karnataka and
Maharashtra. The investment in FIL will, following the intended consolidation of
the Fomento group companies, provide the Fund's shareholders with exposure to
the strong market for iron ore via a group with a 50 year operating record and
significant opportunities for further production growth. The companies which
operate as the Fomento group had in aggregate as at 31 March 2007 an unaudited
net asset value of approximately 4,882 million Indian rupees and unaudited
profits before tax for the period then ended of approximately 3,048 million
Indian rupees (approximately US$121.3 million and $75.8 million respectively,
based on current exchange rates). The investment in FIL will be made using the
Company's existing cash resources.
Origo Sino India PLC ("Origo"), the AIM listed private equity investment and
advisory company which provides consultancy services to ORP, has an existing 3
percent. shareholding in FIL. In connection with the transaction, Origo has
indicated its intent to exercise its co-investment right to subscribe for US$3
million out of the US$20 million allocation for ORP on the same terms and
conditions as the Fund. On completion, ORP will hold a 5.1% interest in FIL and
the investment by Origo will equate to an additional 0.9% interest in that
company.
Investment in Staur Aqua
Staur Aqua A/S is a special purpose holding vehicle which holds around 43.8
percent. of Aqualyng A/S ("Aqualyng").
Aqualyng builds and operates desalination plants on long-term contracts with
minimum volume commitments. Having commissioned turnkey desalination plants
across Europe, the Middle East and Asia, the company has secured several new
projects in the last year.
Origo previously acquired a 4.8 percent interest in Staur Aqua A/S for a total
equity and subordinated debt investment of approximately US$1million and has now
agreed to transfer this investment at cost to the Fund as set out in the Fund's
admission document. In addition, Origo will assign to the Fund any further
co-investment rights with Aqualyng in developing the latter's business in Asia.
The transaction is subject to normal conditions for a transaction of this kind
and is expected to complete in March.
Commenting on today's announcement, Chris Rynning, Executive Director said:
"The admission document for the Fund identified a pipeline of opportunities
available for investment and I am pleased to announce our continued progress
with today's news of investments in these two companies. Our success in
capturing these investments underlines the Fund's strategy and highlights the
potential for future value creation."
ENDS
Further information:
Origo Resource Partners Limited +86 1390 124 6417
Chris Rynning
chris@origoplc.com
Nominated Adviser:
Smith & Williamson Corporate Finance Limited +44 (0)20 7131 4000
Azhic Basirov
Broker:
Liberum Capital Limited +44 (0)20 3100 2223
Simon Atkinson
Public Relations: +44 (0)20 7321 0000
Aura Financial
Michael Oke/Andy Mills
This information is provided by RNS
The company news service from the London Stock Exchange
END
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