OPP.L Regulatory News (OPP)

28 Jan 2008 07:00

Origo Sino-India PLC28 January 2008 RNS release 28th January, 2008 Origo Sino-India PLC announces investments in InVeritas Global Holdings Ltd and fundraising by RIBEC Origo Sino-India PLC ("Origo" or "the Group") announces significant developmentsin line with the Group's strategy to invest in and advise fast growing,profitable companies in India and China following the completion of transactionsrelating to two companies: Roshini International Bio-Energy Corporation ("RIBEC") and InVeritas Global Holdings Limited ("IGH"). IGH transaction IGH aims to become the leading provider of Safety, Health, Environment, Risk andQuality products and services focused on the mining, metal and power industries. IGH has a "blue chip" client base, which includes customers such as Vale,Mittal Arcelor, BHP Billiton, Anglo American and China Power Group, and will usethe additional funds to accelerate its international expansion plans. Origo and Origo Resource Partners Ltd ("ORP") will each invest US$1 million foran aggregate initial 40% equity stake in SHERQ Limited, the holding company ofIGH. ORP has agreed to invest an additional US$ 7.9 million in IGH in the formof equity and a convertible note. In conjunction with these investments, ORPhas also agreed to acquire part of the interest of certain existing shareholdersof SHERQ Limited for a total consideration of US$2.1 million. At closing of all of the above transactions, Origo and ORP will holdapproximately 17% and 37% interests in SHERQ Limited respectively. RIBEC transaction RIBEC, an Origo portfolio company, has successfully raised US$12 million infinancing ("the Fundraising") from Origo Resource Partners ("ORP") and a rangeof external investors. RIBEC is a bio energy company headquartered in Hyderabad, India. RIBEC managesplantations of non-edible, tree-borne bio energy feedstock with an estimated 40million trees and seedlings. RIBEC will use the funds raised to expand itsplantations in India and overseas. Of the US$12 million raised by RIBEC, US$10 million was invested by ORP.Professional Offshore Opportunities Fund and Abrax Limited Partnership eachinvested US$1 million. RIBEC has been a portfolio company of Origo's since September 2007, when Origotook a twenty percent sweat equity position in the Company, while extending aUS$2 million convertible bridge note ("the Note"). The RIBEC investment is carried in the Origo balance sheet at the investmentcost of nil. The present round of financing values Origo's post-money stake inRIBEC at an amount in excess of US$15 million. Origo retains an option to subscribe for an additional US$5 million worth ofstock at the present offering price, exercisable any time prior to an initialpublic offering of RIBEC's equity. First investments by ORP ORP is a natural resource fund which is advised by Origo which raised £48.6million in an IPO and listing on AIM in December 2007. The investments in IGHand RIBEC mark ORP's first investments since listing. ORP has today made a separate announcement regarding these transactions. Chris Rynning, the CEO of Origo and an Executive Director of ORP, commented: "We believe these two transactions are testaments to Origo's ability to secureattractive investment opportunities through our approach of partnering withtarget firms that have been overlooked by other investors. The co-investmentagreement between Origo and ORP enables us to deliver significant value to bothsets of shareholders whilst also providing investee companies with advisoryservices and corporate and capital market access." - ends - Further information: Origo Sino-India Plc Chris Rynning +86 1390 124 6417chris@origoplc.com Nomad and broker: Seymour PierceStuart Lane / John Depasquale +44 (0) 20 7107 8000 Notes to editors: Origo Sino-India Plc ("Origo"): • Origo is an established private equity investor and strategic consultancy business, which provides its shareholders with exposure to growth opportunities and private equity returns in China and India. • Origo's business model is to generate capital gains from private equity investment in growth companies from which it also generates fees for consultancy services related to further fundraisings, M&A and strategic development. • Origo is aligned with two major institutions which provide a source of high quality deal flow. In China, Origo works closely with China Equity, a leading private equity firm, whose chief executive is on Origo's board. In India, Origo has entered into a memorandum of understanding with SBI Capital Markets, one of the longest established companies in the Indian Capital Markets. A former chairman of State Bank of India is on the board of Origo. • At the AIM Placing in December 2006 Origo raised £12.8 million gross of new money via a placing of 25,673,238 Ordinary Shares at 50 pence per share. Each Ordinary Share carries a Warrant exercisable at 55p. Seymour Pierce Ltd is the nominated adviser and broker. Origo Resource Partners Ltd ("ORP"): • ORP invests in companies with significant assets in the natural resource sectors of China and India as well as in companies and projects throughout the world with a link to the natural resource markets of these two markets. • ORP seeks to invest between US$5 million and US$20 million over the life-cycle of an investment (capped at 20 per cent of the net asset value of the company at the time of investment). • ORP predominantly seeks to acquire substantial minority interests, typically holding between 10 and 40 per cent of the investee company's equity. • ORP was admitted to trading on the Channel Islands Stock Exchange (CISX) and AIM on 14 December, 2007 • On admission to trading ORP raised £48.6 million in gross proceeds via a placing of 48,600,000 shares at £1 per share plus 9,720,000 warrants exercisable at £1.20 • Liberum Capital Ltd is ORP's financial adviser and broker, Smith & Williamson Corporate Finance Ltd is its nominated adviser and Elysium Fund Management Ltd its CISX sponsor. This information is provided by RNS The company news service from the London Stock Exchange