OPP.L Regulatory News (OPP)

28 Aug 2007 09:14

Origo Sino-India PLC28 August 2007 RNS release 28th August, 2007 Origo Sino-India Plc increases holding in Fomento International Ltd Origo Sino-India Plc ("Origo") (LSE:OSI), the investment and strategic advisorycompany focused on the private equity markets of China and India, has enteredinto a share subscription agreement for an equity subscription in FomentoInternational Ltd ("FIL" or the "Company"), promoted by Fomento Group, one ofIndia's leading iron ore mining entrepreneurs. Under the agreement Origo will invest US$10 million in FIL, subscribing forapproximately 3% of the Company. It is FIL's intention to become a substantialparticipant in the international iron ore supply market with Origo as astrategic and financial partner. FIL is planning significant expansion inAfrican and the Far Eastern markets with Origo as a partner. FIL's growth strategy, together with growing demand for iron ore and risingprices, positions the Company as a very competitive producer and supplier in theglobal market. With a solid foundation in India and more than 50 years ofoperating history, combined with rising profits and approximately 250 milliontones of proven reserves, FIL is an ideal company for a listing on the MainBoard of the London Stock Exchange, which it is contemplating in the very nearfuture. Vinay Ganga, Origo's Managing Director for India, said: "This investment is atestament to our confidence in Fomento Group and our investment focus in themineral resources sector. Fomento is one of the most progressive miningcompanies in the world and we are privileged to be an investor in the Company.Our objective is further to strengthen FIL to secure its position as a trulyglobal participant in iron ore mining, creating a significant opportunity forOrigo and Fomento Group." Chris Rynning, Chief Executive of Origo said: "Origo's subscription in FILfurther strengthens our position in the rapidly growing natural resources supplymarket comprising China and India. This is one of our most importantinvestments and a key milestone in Origo's growth strategy. We are confidentthat this investment will herald a new beginning for Origo as a majorparticipant in the mining and natural resources sector." A spokesperson for FIL added: "FIL is confident that Origo is a good strategicand financial partner to augment both our international position and ourbusiness in the consistently growing Chinese market. Origo is working closelywith us in facilitating expansion into Mauritania and South Africa among otherterritories." Further information: Origo Sino-India Plc Chris Rynning +86 1390 124 6417chris@origoplc.com Nomad and broker: Seymour PierceJohn Depasquale +44 (0) 20 7107 8000 Media enquiries: Capital MS&LPeter Curtain / James Madsen +44 (0) 20 7307 5330james.madsen@capitalmsl.com Notes to editors: Origo Sino-India Plc * Origo is an established private equity investor and strategic consultancybusiness, which provides its shareholders with exposure to growth opportunitiesand private equity returns in China and India. * Origo's business model is to generate capital gains from private equityinvestment in growth companies from which it also generates fees for consultancyservices related to further fundraisings, M&A and strategic development. * Origo is aligned with two major institutions which provide a source of highquality deal flow. In China, Origo work closely with China Equity, a leadingprivate equity firm, whose chief executive is on Origo's Board. In India, Origohas entered into a memorandum of understanding with SBI Capital Markets, one oflongest established companies in the Indian Capital Markets. A former chairmanof State Bank of India is on the board of Origo. * At the AIM Placing in December 2006 Origo raised £12.8 million gross of newmoney via a placing of 25,673,238 ordinary shares at 50 pence per share. Eachordinary share carries a warrant exercisable at 55p. Seymour Pierce Ltd is thenominated adviser and broker. www.origoplc.com. This information is provided by RNS The company news service from the London Stock Exchange