FFWD.L Regulatory News (FFWD)

15 Mar 2006 08:22

London Asia Chinese Private Equity15 March 2006 London Asia Chinese Private Equity Fund Limited £50 million fundraising The Board of London Asia Chinese Private Equity Limited (the "Company")announces that the placing by Collins Stewart Limited raised gross proceeds of£50 million. The Company's issued share capital comprises 50,000,000 ordinaryshares of 1p each (the "Shares"). In addition, 10,000,000 Warrants have beenissued to placees (on the basis of one Warrant for every five Sharessubscribed). Each Warrant will give the right to subscribe for one Share in theCompany at 120 pence until 31 March 2011. All the Shares and Warrants in the Company have today been admitted to tradingon the Alternative Investment Market of the London Stock Exchange. The Company's objective is to provide shareholders with capital growth frominvesting in a portfolio of companies whose business operations are based inChina. The Company will be self managed in that day to day investment decisions will betaken by the Executive Directors (Simon Littlewood and Victor Ng) withinvestment support being provided to the company through a subsidiary of LondonAsia Capital plc ("London Asia"). Simon Littlewood and Victor Ng are theco-founders of London Asia, a leading China focused investment and merchantbanking group listed on AIM. The Chairman of the Company is John Manser, theformer Chairman of Robert Fleming Holdings Limited. The Company will seek to invest in profitable, well-managed businesses whosebusiness operations are based in China, and which the Executive Directorsbelieve could generate significant growth in profits from the investment ofadditional capital. The Company would normally expect to take a stake ofbetween 10% and 40% of the investee company with a shareholder agreementgoverning the financing and expansion strategy of the investee company. Simon Littlewood, who is also Chief Executive of London Asia, commented: "We are very pleased that the fund has been so well received. This has been theideal time to launch the Company, as UK investors are aggressively seeking toaccess the opportunities that China offers. With London Asia's network andaccess to deal flow, I am very excited about the prospects for the Company." --oo-- For further information, please contact: Simon Littlewood London Asia Capital plc Tel: 020 7248 7578 Hugh Field Collins Stewart Limited Tel: 020 7523 8000 15 March 2006 Collins Stewart Limited, which is authorised and regulated by the FinancialServices Authority in the conduct of investment business, is acting exclusivelyfor London Asia Chinese Private Equity Limited and for no-one else in connectionwith the placing and will not be responsible to anyone other than London AsiaChinese Private Equity Limited for providing the protections afforded tocustomers of Collins Stewart Limited or for providing advice in relation to theissue. ENDS This information is provided by RNS The company news service from the London Stock Exchange