4 May 2010 07:00
4 May 2010
Origo Partners PLC
Fans Media forms joint venture with SK Telecom
Origo Partners Plc ("Origo") is pleased to announce that its portfolio company Fans Media Ltd ("Fans Media" or "the Company") has established a joint-venture with SK Telecom ("SKT") called SK FansLtd ("SK Fans").
As South Korea's largest telecom service provider, SKT is recognised as an innovator in the global telecom industry. SKT offers an extensive portfolio of broadband and mobile value-added services and brands, including CyWorld, South Korea's largest internet community, and CyWorld China, a well-established social network service ("SNS") and blogging site.
SKT's contribution to the joint-venture will be the CyWorld China business, as well as US$12 million in cash, for which it will receive a 51% stake. Fans Media, on its part, will contribute all of its assets, including its main internet property, www.ifensi.com, for a 49% interest in SK Fans. The amalgamation of the CyWorld and Fans Media businesses, and SKT's investment, are subject to various closing conditions, including certain regulatory approvals. The transaction is expected to complete in July 2010.
Origo will maintain an indirect interest in SK Fans, through a combined preferred and common stock holding in Fans Media, equivalent to a converted interest of 14.3% in the outstanding share capital of that company.
Origo CEO, Chris Rynning, commented:
"We have been exploring for some time various financing strategies for expanding the business model and boosting the financial strength of Fans Media. I am therefore delighted about the strategic commitment of SK Telecom, a recognised player in the region and a pioneer in the value-added telecom space. SKT's investment will ensure that Fans Media is fully-capitalised to maintain its strong position in China's rapidly changing online media and social networking market. Furthermore, we expect that one unified management and shareholder structure will create tangible cross-group benefits for both businesses and look forward to working with SKT in making SK Fans a success."
For further information about Origo please visit www.origoplc.com or contact:
| Origo Partners plc Chris Rynning (chris@origoplc.com) Niklas Ponnert (niklas@origoplc.com)
|
+86 1390 124 6417
+86 1351 106 1672 |
| Nominated Adviser Smith & Williamson Corporate Finance Limited Azhic Basirov
| +44 (0)20 7131 4000 |
| Broker Liberum Capital Limited Simon Atkinson
| +44 (0)20 3100 2222 |
| Public Relations Aura Financial Andy Mills / Nina Legge | +44 (0)20 7321 0000 |
Origo Partners:
• Origo is an established private equity investor and strategic consultancy business, which provides its shareholders with exposure to growth opportunities and private equity returns based on the China growth story.
• 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 has a significant portfolio of investments in a range of industrial sectors, including metals and mining, agriculture, renewable energy/clean tech and technology, telecom and media ("TMT").