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4 Feb 2009 09:45
4 February 2008
Sale of shareholding in Fomento International Ltd
Origo Sino-India Plc ("OSI" or "the Company") announces the sale of its 3% stake in Fomento International Limited ("FIL"), an intended consolidation vehicle for international iron ore assets. The stake was sold back to FIL for a total cash consideration of US$4 million, the total amount invested by the Company. The stake was being held by OSI at a value of £2 million. Upon closing of the transaction, OSI will hold no interest in FIL.
Commenting on today's announcement, Chris Rynning, Chief Executive Officer of OSI said:
"Given prevailing market conditions, and because no liquidity event seems likely in the foreseeable future, we believe it is in the best interests of the Company to divest our position in FIL. OSI intends to deploy these funds to support the growth of our current portfolio while selectively considering new opportunities which exists in our target markets of India and China."
An announcement was also made today by Origo Resource Partners Ltd, the fund to which OSI provides consultancy services, which has also sold its entire stake in FIL.
ENDS
Further information:
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Origo Sino-India PLC Chris Rynning (chris@origoplc.com) Niklas Ponnert (Niklas@origoplc.com)
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+86 1390 124 6417 +86 1351 106 1672 |
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Nominated Adviser: Smith & Williamson Corporate Finance Limited Azhic Basirov
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+44 20 7131 4000 |
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Broker: Liberum Capital Limited Simon Atkinson
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+44 20 3100 2222 |
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Public Relations: Aura Financial Andy Mills / Harry Fielder |
+44 20 7321 0000 |
Notes to editors:
Origo Sino-India PLC ("Origo"):
Origo is an established private equity investor and strategic consultancy business, which provides its shareholders with exposure to growth opportunities and private equity returns in China and India.
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 is aligned with two major financial institutions which provide a source of high quality deal flow. In China, Origo works closely with China Equity, a leading 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 Capital Markets, 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 of Origo.
Through a placement of new Origo ordinary shares in March 2008, funds managed by GLG Partners LP invested approximately £17 million bringing their total stake in Origo to approximately 29.6% of the Company's outstanding share capital.
Origo also 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.
On its admission to AIM in December 2006 Origo raised GBP12.8 million gross of new money via a placing of 25,673,238 Ordinary Shares at 50 pence per share. Each ordinary share carried a warrant exercisable at 55p.
Origo has a significant portfolio of investments in a range of industrial sectors, including mobile applications and content; natural resources; art and paper products; furniture; food and beverage; online gaming; anti-virus software; and bio energy.
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