7 Feb 2011 07:00
7 February 2011
Origo Partners PLC
Investment in Shanghai EV-Tech Ltd
Origo Partners Plc ("Origo") is pleased to announce it has entered into an agreement to acquire a 49 per cent stake in Shanghai EV-Tech Ltd. ("EV-Tech" or "the Company"). Under the terms of the transaction, Origo has agreed to provide initial funding of up to approximately US$550,000, subject to the achievement of certain operational and financial milestones.
EV-Tech specializes in the sale and development of battery management systems and vehicle control units for the Electric Vehicle ("EV") market. The Company is founded by a team of engineers who previously worked together at the Haima Auto Company, a Chinese car manufacturer with substantial investments in the EV sector, on matters relating to EV-related applications, especially battery management and vehicle control systems. The EV-Tech team has extensive expertise in systems and software solutions which optimize EV battery safety and performance, facilitate communication among various electronic control units of the vehicle, and provide real-time monitoring of electric motors. EV-Tech is presently in the early stages of commercialization of its products.
For the duration of three years, EV-Tech's management team will have the option to buy 30 per cent of Origo's shareholding provided a minimum return of 15 per cent per annum, thereby potentially reducing Origo's shareholding from 49 per cent to approximately 35 per cent in the Company. The proceeds of the financing will primarily be used to fund the completion of the Company's pilot products and working capital.
Commenting on the announcement, Chris Rynning, Chief Executive of Origo, said:
"By using our extensive research of the Chinese EV sector and experience from our investment in Unipower Battery Ltd, we have identified battery management systems and vehicle control units as critical components of the EV value chain. We believe EV-Tech is well positioned to take a substantial share of this market segment and expect the Company to benefit from the rapid development of the Chinese EV sector."
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 |
Broker and Nominated Adviser Liberum Capital Limited Simon Atkinson/ Richard Bootle | +44 (0)20 3100 2222 |
Public Relations: Aura Financial Andy Mills / Nina Legge | +44 (0)20 7321 0000 |
Notes to editors:
Origo Partners:
Origo is an AIM-listed private equity investor and strategic consultancy business which provides its shareholders with exposure to China-linked investment opportunities.
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.
Origo invests directly in high growth Chinese companies as well as in companies based around the world with significant exposure to Chinese export markets.