16 Dec 2009 07:00
16 December 2009
Origo Partners Plc
Aqualyng Holding A/S secures breakthrough contract in China
Origo Partners plc ("Origo") is pleased to announce that Aqualyng Holding A/S ("Aqualyng"), an Origo portfolio company, has concluded an agreement to build its first desalination plant in China.
Aqualyng builds and operates desalination plants using its patented reverse-osmosis and energy saving technologies. This significant achievement provides Aqualyng with an entry to the Chinese water market.
Under the terms of the agreement, Aqualyng will deliver a large-scale desalination plant to the Caofeidian Industrial Development Zone outside of Beijing (the "Project"). In phase one of the Project, the plant will have a capacity of 50,000 m3 of freshwater per day, expecting to expand over the next 15 years.
The Project will be developed and operated on a 30 year concession by a new joint-venture company owned by Aqualyng, its affiliates and Tangshan Caofeidian Infrastructure Construction Investment Co. Ltd. ("IIC"). The financial risk of the Project is largely underwritten by IIC and the Caofeidian local government, including a government secured agreement to off-take all water produced by the plant at pre-agreed tariffs for the duration of the concession period. Construction is expected to commence in Q1, 2010 and last for 18 months.
In order to fund the equity contribution to this and other secured projects, Aqualyng is in the process of concluding a US$25 million fund raising in the form of a subordinated loan with warrants and has secured commitments of approximately US$18 million from existing shareholders and new institutional investors. Origo has participated in the funding round with a follow-on investment of NOK 6.5 million (US$ 1.1 million) through its special holding vehicle, Staur Aqua A/S.
Commenting on today's announcement, Chris Rynning CEO of Origo said.
"We are pleased with the progress Aqualyng has made. This project demonstrates the execution abilities of the Aqualyng team and the strength of Origo's strategy of identifying, funding and assisting promising international companies to access the Chinese market. We are excited about continuing to work closely with Aqualyng to maximise the opportunity represented by the desalination market in China. "
"This is a breakthrough for our company, said Bernt Østhus, the Chairman of Aqualyng. The Chinese market for desalination solutions is poised for rapid growth, however it has proven a hard nut to crack for international players. This agreement is yet another testament to the value of our technology, in particular our patented energy Recuperator, in giving us the competitive edge required to win a contract of this magnitude in a demanding market like China."
For further information about the Company 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 |
Notes to editors:
Aqualyng Holdings A/S ("Aqualyng"):
Aqualyng is a leading provider of desalination solutions based on reversed osmosis technology. The company has, since inception, designed, built, installed and operated desalation plants in the Canary Islands, Morocco, Egypt, Taiwan and Saudi-Arabia. In the last few years, Aqualyng has won several contracts for the delivery of desalination plants to Ghana, Oman and China, and has emerged as one of the most dynamic and innovative players on the global desalination market. The company focuses on the delivery and sales of water, based on one of the most energy efficient desalination solutions available in the market enabled by the company's patented energy recovery system. Aqualyng is owned by Staur Holding, Lyng Group, Aqua Venture, and Pareto. Based in Vanvikan, Norway and Dubai, the company has subsidiaries in Ghana, Spain and China.
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 signed a memorandum of understanding with GLG Partners LP in March 2008 to explore asset management and advisory opportunities in China, India and other markets.
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").