11 Apr 2013 07:00
Legendary Investments PLC
("the Company")
11 April 2013
Investee Company Update
Creon Resources Plc Progresses Oil Rig Building and Enters Ferrous Metals Sector
Legendary is pleased to report that its investee company, Creon Resources Plc ("Creon") (AIM: CRO), the resource and resource infrastructure investment company, has entered the ferrous metals sector by acquiring a 49% equity interest in Singapore based MGR Resources PTE Ltd ("MGR").
MGR is a wholesale trader of ferrous metals and ore. It sources iron ore principally from Africa, India and the Middle East and sells on to buyers in East Asia including China.
In addition, to acquiring 49% of MGR for US$49,900, Creon has agreed to provide a three year 15% coupon convertible loan to MGR of up to US$1.95 million to assist MGR to increase its trading operations ("Convertible Loan"). The Convertible Loan can be converted at any time during the three year period at Creon's option into new shares in MGR at US$1 per new share.
Over the last several months, Creon has transformed itself.
Following the strengthening of its balance sheet in June 2012, Creon entered into a JV with China based shipbuilder, Yangzijiang Shipbuilding (Holdings) Pte Ltd, which is listed on the Singapore Stock Exchange (SP:YZJ) ("YZJ"). Creon and YZJ have a 40% stake in Jiangsu Yangzijiang Offshore Engineering Co. Ltd. ("YZJOE"), a jack up rig construction company.
In December 2012, YZJOE won its first contract (of US$170 million) to construct and deliver a Le Tourneau Super 116E Class design self-elevating mobile offshore jack up drilling rig. Since then, YZJOE has secured licences for the Le Tourneau kit designs and the drilling package. Furthermore, construction of YZJOE's new rig yard is now well under way.
With the investment into MGR, Creon has expanded its activities into the ferrous metals sector. The Convertible Loan granted to MGR will provide income for Creon in the form of interest on the Convertible Loan.
Zafar Karim, Executive Chairman of Legendary, said "We are pleased with the rapid progress being made by Creon, our latest investment, in the oil rig building sector. The market in this sector is tight and supply has long lead times. Creon's entry into ferrous metals adds another leg to Creon's portfolio. Creon will earn a coupon from the Convertible Loan and MGR will, no doubt, be able to leverage off Creon's wide and deep contacts throughout East Asia, the Middle East and Africa. We look forward to further progress."
Further information is available at:
http://www.creonresources.com/uploads/13/Creon%20MGR%20Investment%20Final%2010.4.pdf
For further information, please contact:
Contact: | ||
Legendary Investments Plc | Zafar Karim / Thomas Reuner
| 020 8201 3536 |
Grant Thornton Corporate Finance
| Colin Aaronson/ Melanie Frean / Jen Clarke
| 020 7383 5100 |
Simple Investments
| Nick Emerson/ Andrew Thacker | 01483 413500 |
Newgate Threadneedle | Caroline Evans-Jones | 020 7653 9850
|
About Legendary Investments plc
Legendary is a proactive investment company that focuses on making investments in and assisting companies which exhibit the potential to generate returns of many multiples through capital appreciation. Typically, Legendary invests in small companies where there are clear catalysts for value appreciation and the companies are operating in sectors exhibiting long term growth. Examples of such sectors include technology, energy, natural resources and mining. Legendary is incorporated in the UK, which is its principal country of operation.