OPP.L Regulatory News (OPP)

13 Mar 2008 07:01

Origo Sino-India PLC13 March 2008 13 March 2008 Origo Sino-India PLC Investments in E-Bill Holdings and Fomento International Origo Sino-India Plc ("Origo" or the "Company") (LSE: OSI) is pleased toannounce a new investment in E-Bill and a further investment in FomentoInternational Ltd with Origo Partners Limited ("ORP" or "the Fund"). Investment in E-Bill Origo has entered into agreements to acquire an equity stake of approximately 5%in E-Bill China Holdings ("E-Bill"), a Chinese electronic payment servicesprovider, for an investment of US$1.3 million. Headquartered in Shenzhen in the southern Chinese province of Guandong, E-Billoperates "E-piao Tong," a branded electronic payment and delivery network.Available through affiliated retailers, the E-piao Tong service offers consumersa convenient way of settling bills and purchasing digital goods,including mobile-top up vouchers, lottery tickets and online gaming. By joiningthe E-Bill network, affiliated merchants are able to reduce inventories, improvecash-flow management and tap distribute digital goods and services at nomarginal cost. The E-piao Tong network handled around RMB 5 billion (over US$700 million) intransactions in 2007. The directors of the Company believe E-Bill's provenbusiness model and management team will enable it to grow significantly asChina's electronic payment sector expands. Origo was joined by two other investors, Sequoia Capital China and China EquityInternational Holdings, in the fundraising, bringing the total amount raised byE-bill to US$6.5 million. These proceeds will be used to expand the E-Billnetwork and further broaden E-bill's service offering. The transaction is subject to normal closing conditions for a transaction ofthis kind and is expected to complete in April. Investment with ORP In a separate announcement, ORP, the CISX and AIM listed natural resource fundto which the Company provides consultancy services, announced today that it hascompleted its third and fourth investments in the two months since the Fund wasestablished. ORP has agreed to invest up to US$20 million in iron ore producer FomentoInternational Ltd ("FIL"), an existing Origo investee company. Origo willexercise its co-investment right and subscribe for US$3 million of the US$20million allocation for ORP. On completion, ORP will hold 5.1% interest in FILand the investment by Origo will equate to an additional 0.9% interest in thatcompany. The Fomento group is a leading Indian privately held vertically integratedmining group with operations in the iron ore rich states of Goa, Karnataka andMaharashtra. The investment in FIL will, following the intended consolidation ofthe Fomento group companies, provide the Fund's shareholders with exposure tothe strong market for iron ore via a group with a 50 year operating record andsignificant opportunities for further production growth. As at 31 March 2007,the companies which operate as the Fomento group had in aggregate an unauditednet asset value of approximately 4,882 million Indian rupees and unauditedprofits before tax for the period then ended of approximately 3,048 millionIndian rupees (approximately US$121.3 million and $75.8 million respectively,based on current exchange rates). The investment in FIL will be made using theCompany's existing cash resources. ORP has also announced today an investment of US$1 million for a 4.8% stake inStaur Aqua A/S, a special purpose holding vehicle which holds around 43.8% ofAqualyng A/S ("Aqualyng"). Aqualyng builds and operates desalination plants onlong-term contracts with minimum volume commitments. Having commissioned turnkeydesalination plants across Europe, the Middle East and Asia, the company hassecured several new projects in the last year. Commenting on today's announcements Chris Rynning, CEO of Origo, said: "We continue to identify a range of opportunities in the fast growing markets ofIndia and China and are positioning the Company to capture these opportunities." "Our investments in E-Bill and Fomento underline our focus on growing andsustainable businesses where our consultancy and financing approach can assistthe respective investee company management teams to achieve their developmentobjectives." ENDS Further information: Origo Sino-India PLC +86 1390 124 6417Chris Rynningchris@origoplc.com Nominated Adviser:Smith & Williamson Corporate Finance Limited +44 (0)20 7131 4000Azhic Basirov Broker:Liberum Capital Limited +44 (0)20 3100 2223Simon Atkinson Public Relations: +44 (0)20 7321 0000Aura FinancialMichael Oke/Andy Mills Notes to editors: Origo Sino-India Plc ("Origo"): • Origo is an established private equity investor and strategicconsultancy business, which provides its shareholders with exposure to growthopportunities and private equity returns in China and India. • Origo's business model is to generate capital gains from privateequity investment in growth companies from which it also generates fees forconsultancy services related to further fundraisings, M&A and strategicdevelopment. • Origo is aligned with two major institutions which provide a source ofhigh quality deal flow. In China, Origo works closely with China Equity, aleading private equity firm, whose chief executive is a member of Origo's board.In India, Origo has entered into a memorandum of understanding with SBI CapitalMarkets, one of the longest established companies in the Indian Capital Markets.A former chairman of the State Bank of India is also a member of the board ofOrigo. • On its admission to AIM in December 2006 Origo raised £12.8 milliongross of new money via a placing of 25,673,238 Ordinary Shares at 50 pence pershare. Each ordinary share carried a warrant exercisable at 55p. • Origo has a significant portfolio of investments in a range ofindustrial sectors, including mobile applications and content; naturalresources; art and paper products; furniture; food and beverage; online gaming;anti-virus software; and bio energy. This information is provided by RNS The company news service from the London Stock Exchange