FFWD.L Regulatory News (FFWD)

15 Mar 2006 08:22

London Asia Capital PLC15 March 2006 For immediate release: 15 March 2006 LONDON ASIA CAPITAL PLC Private Equity Fund Fully Subscribed and Begins Trading on AiM London Asia Capital plc ("London Asia"), the Greater China focused investmentand merchant banking group, is pleased to announce that the London Asia ChinesePrivate Equity Fund Limited ("the Fund") successfully raised the £50 million itwas seeking and begins trading on AiM today. Collins Stewart Limited is actingas broker and nominated adviser to the Fund. The objective of the Fund, which is a Guernsey registered company, is to provideshareholders with capital growth from investing in a portfolio of companieswhose business operations are based in China. The Fund will be self managed in that day to day investment decisions will betaken by Simon Littlewood and Victor Ng, who are Executive Directors of theFund. The Chairman of the Fund is John Manser, the former Chairman of RobertFleming Holdings Limited. London Asia is investment consultant to the Fund, utilising its network ofoffices and staff both within and outside China. London Asia will receive anannual management fee of 2.0% of the net asset value of the Fund, equal to £1million in the first year, and a 20% share of the increase in net asset value ofthe Fund, provided the Fund generates a minimum 6% compound growth per annum. The Fund will primarily focus on investment in profitable businesses in Chinathat are seeking additional working capital to fund expansion, or are looking tolist on capital markets worldwide. London Asia has already identified over £150million of investments that potentially meet the Fund's investment criteria fromits existing deal flow, sourced from its teams in seven offices across China.London Asia has given an undertaking that it will not invest in any investmentopportunity without giving the Fund first right of refusal to invest. Simon Littlewood, Chief Executive, London Asia Capital plc said: "We areextremely encouraged by the high level of investor interest in the fundraising,which was oversubscribed. Identifying, investing in, advising and ultimatelyexiting Chinese businesses is the cornerstone of our business model. We have hadgreat success in the past investing from our own resources, and we look forwardto replicating that success in the Fund." He added: "We have increased the size of our business over the last six monthsin anticipation of the increased activities of our fund management arm, and nowhave over 50 full time staff in 14 offices around the globe. The additionalcapital in the Fund and fees generated from it will enable us to expand LondonAsia's activities much more rapidly than we have been able to in the past, totake advantage of the huge number of opportunities that our uniqueinfrastructure and business model generates." - ends - For further information please visit www.londonasia.com or contact: John West/Matt Ridsdale Simon LittlewoodTavistock Communications London Asia Capital plcTel: 020 7920 3150 Tel 020 7248 7578 This information is provided by RNS The company news service from the London Stock Exchange