19 Apr 2010 07:00
19 April 2010
Origo Partners PLC
Aqualyng Holding A/S joins forces with Beijing Enterprises Water Group Limited
Origo Partners PLC ("Origo") is pleased to announce that its portfolio company Aqualyng Holding A/S ("Aqualyng") has concluded a major joint venture ("the Joint Venture") agreement with a leading Chinese water treatment group to accelerate its expansion in China.
Under the agreement, Aqualyng has sold a 50% stake in its subsidiary Aqualyng China Limited ("Aqualyng China") to Hong Kong listed Beijing Enterprises Water Group Limited ("BEWGL"), a leading Chinese integrated water treatment provider with over 60 water plants across China. BEWGL is majority owned by Beijing Enterprises Holdings Limited, the Hong Kong listed commercial vehicle of the Municipal Government of Beijing with significant interests in gas supply, toll roads, waste water treatment, brewing and technology.
Aqualyng China is developing a 50,000m3/day sea water desalination plant at the Caofeidian Industrial Zone outside of Beijing in partnership with the Tangshan Infrastructure Construction and Investment Co. Ltd ("IIC"). The plant is one of the largest desalination plants under construction in China and has a 30 year offtake agreement in place. The project, which is expected to expand over the next 15 years, will serve the rapidly growing power generation plants and industrial customers in a number of industrial zones around Beijing. BEWGL currently has an aggregate water treatment capacity of 4,877,500 tonnes per day.
It is expected that this Joint Venture will form the basis for further projects in the rapidly growing Chinese market leveraging Aqualyng's leading technology, BEWGL's established market position and the unparalleled access to new projects which the Municipal Government of Beijing enjoys.
Origo has a 9.2% equity interest in Staur Aqua AS, the 50.3% holding company of Aqualyng.
Commenting on today's announcement, Chris Rynning CEO of Origo said.
"This transaction has the potential to transform Aqualyng's business by providing a strong, low risk platform on which to expand its presence across China. I believe the Joint Venture could benefit from unparalleled access to new business opportunities across mainland China, preferential financing terms and beneficial offtake arrangements through its links with the Municipal Government of Beijing."
The desalination market in China is growing rapidly and, as a leading global provider of desalination technologies, Aqualyng is now perfectly positioned to capitalise on this growth."
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 desalination 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 Aqua AS, Lyng Group, Aqua Venture, and Pareto. Based in Vanvikan, Norway and Dubai, the company has subsidiaries in Ghana, Spain and China.
Beijing Enterprises Holdings Limited (Stock Code: 0392.HK)
Beijing Enterprises Holdings Limited ("Beijing Enterprises") is the sole overseas listed conglomerate controlled by the Beijing Municipal Government for channelling capital, technology and management expertise from international markets into Beijing's development priorities. After a series of divestitures, Beijing Enterprises has successfully streamlined its asset portfolio and transformed itself into a diversified conglomerate with a focus on infrastructure, utilities and consumer products. Its core assets include Beijing Gas Group Company Limited (the largest integrated citywide natural gas distributor in the PRC), Beijing Enterprises Water Group Limited (Stock Code: 0371.HK), Beijing Number 9 Water Plant concession, Beijing Yanjing Brewery Company Limited and Beijing Capital Expressway Development Co., Ltd. Currently, Beijing Enterprises holds a 57.62% share interest in Beijing Enterprises Water Group Limited (Stock Code: 0371.HK) which is Beijing Enterprises' major vehicle for investing in regional water projects in mainland 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").