ECAP.L Regulatory News (ECAP)

30 May 2007 07:30

Promethean India PLC30 May 2007 30 May 2007 Promethean India Plc Investment in Mahindra Forging Mauritius Limited Promethean India Plc (ticker symbol PTHI) ("Promethean India") is pleased toannounce that it has acquired a 10% shareholding in Mahindra Forgings MauritiusLimited ("MFML") through its Mauritian subsidiary, Promethean India InvestmentsFund 1 ("Fund 1"). The aggregate amount of the investment is approximately £6.14million, being a £2.46 million equity investment for a 10% shareholding in MFMLand a £3.68 million loan to an SPV, which will co-invest alongside Fund 1. Theloan will be secured against a further 15% interest in the shareholding of MFMLand will be repayable over two years earning interest at 9% per annum. Shouldthe SPV co-investment fail for whatever reason, it is possible that PrometheanIndia's interest in the shareholding of MFML may increase in aggregate to 25%. MFML holds 100% of the economic interests in Schoneweiss & Co. GmbH, a Germanbased forging business which specialises in manufacturing auto components andwhich has a strong exposure to the Indian automotive industry. With over 1million cars sold in India last year and India fast becoming the centre for autocomponent manufacturing in the world, the investment in MFML gives PrometheanIndia exposure to a sector that is growing rapidly. In the year to 31 December2006, the underlying companies within MFML generated revenues of £65 million andprofits after tax of £5 million. Promethean India is backing the incumbent management team of MFML in abuy-and-build strategy and looks forward to supporting the management team incontinuing to build the business both organically and through acquisitions. Itis envisaged that the business will grow rapidly and there may be opportunitiesto invest further capital in the future. Promethean India has now made its first investment since raising £50 million andbeing admitted to AIM a month ago. Mohit Burman, chairman of Promethean India Advisors Private Limited, theInvestment Adviser to Promethean India, said today: "This investmentdemonstrates our ability to originate and execute proprietary deals. We are veryexcited about the growth prospects in the Indian automobile sector and feelprivileged to be working with the largest automobile conglomerates in thecountry." Gaurav Burman, a principal at Promethean Investments LLP, the Investment Managerto Promethean India, stated, "When we raised our India Fund less than a monthago we had a number of transactions in our pipeline. We are very pleased to havecompleted our first investment and are looking forward to working with theMahindra's to build what we hope will be one of the largest forging businessesin the world." Enquiries: Gaurav Burman Promethean Investments LLP +44 (0)78 0218 1811Nandita Sahgal Insinger de Beaufort +44 (0)20 7190 7000 Promethean Investments LLP is authorised and regulated by the Financial ServicesAuthority. -ENDS- Notes to Editors: Promethean Investments LLP Promethean Investments LLP is a specialist fund manager that focuses on activistprivate equity investing in both quoted and private UK and Indian businesses.Promethean aims to acquire an interest in public and private companies where itbelieves opportunities exist to create or unlock near-term value. It combinesactive management, financial leverage and flexibility to create bespoke dealstructures for quoted and unquoted companies. Promethean Investments LLP manages Promethean Plc, a £57 million AIM quotedprivate equity fund and also manages Promethean India Plc, a £50m AIM quotedprivate equity fund that targets value and growth opportunities in India. This information is provided by RNS The company news service from the London Stock Exchange