ORP Origo Res. (See LSE:OPP)

 

TIDMORP 
 
RNS Number : 9463Q 
Origo Resource Partners Limited 
22 April 2009 
 

22 April 2009 
 
 
Further investment in IGH 
 
 
Origo Resource Partners Limited ("ORP" or the "the Fund") is pleased to 
announce a follow-on investment, in conjunction with Origo Sino- India ("Origo" 
or "OSI"), of an aggregate amount of US$5 million ("the Investment") in IGH 
Limited ("IGH"). 
 
 
The Investment, which is initially in the form of new convertible loan stock to 
be issued by IGH, will be funded from the respective existing cash resources of 
ORP and OSI, and will be split on a 70:30 basis in accordance with their 
pro-rata shareholding in IGH.  The $3.5 million investment by ORP will result in 
the Fund's equity interest in IGH Limited increasing to a maximum of 42.7% 
(assuming the loan stock is converted). 
 
 
The Investment will be used to fund the completion of one acquisition and one 
proposed acquisition by IGH. The acquisitions will add critical mass to IGH's 
activities, as it develops into a leading global provider of health and safety, 
environmental and enterprise risk management services, and expands to capture 
significant growth opportunities in the Asia Pacific, South American and Middle 
Eastern markets. Completion of the acquisitions is expected within the next 
month. 
 
 
The acquisition of IRCA Pty Limited and proposed acquisition of a 45% interest 
in IRCA Middle East LLC will support this development by providing the enlarged 
group with: 
 
 
  *  A well established and stable management team leading a staff of over 200 
  experienced industry professionals; 
  *  An intellectual property base developed over 15 years comprising programmes, 
  know-how and systems covering risk assessment, auditing, behaviour intervention, 
  business continuity, training and software solutions; 
  *  A Middle East joint venture set up in 2007; 
  *  A leading presence in a range of attractive industrial sectors, such as the 
  mining, petrochemical, gas, transport, construction and food industries; 
 
 
 
On completion of the acquisition of IRCA Pty Limited, the enlarged group will be 
renamed IRCA Holdings Limited ("IRCA") and have a presence in 5 continents. In 
2008 the enlarged group achieved revenues of $19 million on a pro forma basis 
and the directors of IRCA expect the enlarged group to experience revenue growth 
in the 2009 financial year. The enlarged group will benefit from a blue 
chip client base that includes customers such as Anglo American, ArcelorMittal, 
Vale, SASOL, ESKOM, BHP Billiton,Unilever, BP, Volkswagen, SA Breweries, Lafarge 
and China Power Group. 
 
 
Commenting on today's announcement, Chris Rynning, Executive Director of ORP 
said: 
 
 
"I am delighted that ORP and Origo have been able to play such an important role 
in the development of IGH. This transaction provides IGH with significant growth 
opportunities and underlines how our strategy of investing and working with 
promising companies, in our chosen sectors, can deliver value to shareholders." 
 
 
Carel Labuschagne, Chief Executive of IRCA said: 
 
 
 
 
"The leading operating and technical expertise developed to serve South African 
mining and industry over many years provides us with a significant competitive 
advantage in an increasingly globalised market place for operational, health and 
safety and environmental risk management services. 
 
 
 
 
"I am convinced that the combination of IRCA's significant intellectual capital 
with IGH and Origo's presence in China will enable us to capture opportunities 
in this rapidly growing market. I and the rest of my team are delighted to be 
working with Origo, given their track record of supporting and working with the 
companies in which they invest." 
 
 
 
 
ENDS 
 
 
Further information: 
 
 
Origo Resource Partners     +86 1390 124 6417 
Chris Rynning 
Niklas Ponnert    +86 1351 106 1672 
 
 
 
 
Nominated Adviser: 
Smith & Williamson Corporate Finance Limited             +44 20 7131 4000 
Azhic Basirov 
 
Broker: 
Liberum Capital Limited                                                    +44 
20 3100 2223 
Simon Atkinson 
 
 
Public Relations:    +44 207321 0000 
Aura Financial 
Andy Mills / Nina Legge 
 
 
 
 
 
 
 
 
 
Notes to editors: 
 
 
 
 
IGH 
 
 
  *  IGH aims to become the leading global provider of operational and environmental 
  risk management solutions to industry, focused on the mining, 
  power, construction and manufacturing industries and on the public sector. 
 
 
 
  *  IGH will comprise a network of 15 subsidiaries across 5 continents. IGH is 
  actively seeking to expand its international roll-out, both organically and by 
  acquisition, in the key Asia Pacific, South American and Middle East markets. 
 
 
 
  *  In China specifically, the demand for operational and environmental risk 
  management services is largely driven by legislative compliance and mandatory 
  budget allocations. IGH expects recent legislative changes in that market to 
  represent a significant growth opportunity in the years ahead. 
 
 
 
  *  2008 was IGH's first full year of operation, in which it set up corporate and 
  operating infrastructure. The businesses of IGH and the two acquisitions are 
  complementary and will be combined on completion of the transaction. On a pro 
  forma basis, for the 2008 financial year, the enlarged group achieved revenues 
  of approximately $19 million, pre-tax losses of approximately $0.8 million, 
  including approximately $0.7 million of one-off costs, and had net liabilities 
  at year end of approximately $0.2 million. The directors of IGH expect the 
  enlarged group to experience revenue growth in the 2009 financial year and to be 
  profitable. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCEANLFADANEFE 
 

Origo Res. (See LSE:OPP) (LSE:ORP)
Historical Stock Chart
From Jun 2024 to Jul 2024

Origo Res. (See LSE:OPP) (LSE:ORP)
Historical Stock Chart
From Jul 2023 to Jul 2024