8 Sep 2010 07:00
8 September 2010
Origo and Monnis create new corporate finance advisory service in Mongolia
Origo Partners Plc ("Origo") today announced the formation of a joint venture with Monnis International Co. Ltd. ("Monnis"), one of Mongolia's largest industrial holding companies, to establish Resource Investment Capital Ltd ("ResCap" or "the Company"). ResCap will provide corporate finance advisory services primarily to companies active in or seeking to enter the Mongolian natural resources sector.
Mongolia has vast, largely untapped reserves of bulk commodities and base metals comprising coal, iron ore, copper, gold and uranium. The Mongolian government has recently announced a series of policy measures and infrastructure initiatives designed to unlock this value, including support for both government and private enterprises looking to access international capital markets to meet funding requirements estimated to be in excess of US$25 billion.
Headquartered in Ulaanbaatar, Mongolia, ResCap will seek to foster long-term, senior-level relationships with clients and position itself as an independent advisor on strategic transactions such as mergers, acquisitions, restructurings, capital raising solutions and other financial matters. ResCap will offer these services to both Mongolian and international enterprises focused on natural resources and related infrastructure projects.
ResCap will begin trading this month subject to receiving appropriate regulatory approvals and will be chaired by Unenbat Jigjid, former Governor of the Bank of Mongolia.
Unenbat Jigjid was Governor of the Bank of Mongolia from 1996 to 2000, received his first degree from the Institute of Economics and Statistics in Moscow in 1985, and took his master of International Affairs degree from Columbia University in 1994. Currently a member of the supervisory board of the Bank of Mongolia and a member of the board of directors of a microfinance development unit in Mongolia, he brings 23 years of international and domestic policy and banking experience to the Company.
The ResCap team comprises a number of experienced foreign investment banking professionals and Mongolian nationals with international training and experience from the world's leading investment banks and advisory firms. In addition, Eric Zurrin formerly of UBS Investment Bank will be joining the Company in due course.
On a fully-diluted basis, Origo will own 35% of ResCap, with the balance being held by Monnis, private investors, and the Company's management.
Commenting on today's announcement, Chris Rynning, CEO of Origo said:
"I am excited about this new partnership with Monnis and about the quality of the team we have assembled. Unenbat Jigjid brings with him a depth of knowledge and a range of contacts in Mongolia's domestic market that will complement the international experience of the rest of the team. I am confident that with the management team in place, ResCap will play a significant role in the development of Mongolia's economy as well as contributing to Origo's strategic goals in Mongolia."
Chuluunbaatar Baz, CEO of Monnis Group, commented:
"Monnis Group see this as a strong and long-term partnership that presents an exciting opportunity for all concerned. In keeping with Monnis' philosophy of long term sustainable expansion in a range of sectors, this will allow Monnis to further benefit and grow the Mongolian economy and we are confident that with the first class and experienced team that has been assembled ResCap will successfully provide excellent, vital and dynamic investment banking advisory services to Mongolia"
Unenbat Jigjid, the Chairman of ResCap, commented:
"I am delighted to join ResCap, which has been specifically created to bridge the gap between Mongolia and the international capital markets. I look forward to working with the team on bringing together local and international stakeholders at this important juncture in Mongolia's economic development."
For further information about ResCap please visit www.resource-cap.com. For further information about Origo please visit or www.origoplc.com. Alternatively 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 / Ellen Francis
| +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.
·; Based in Beijing, 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.
Monnis Group:
Monnis was established in 1998 as an official distributor of Nissan Motor Co in Mongolia, but has since expanded its activities into geology, mining, energy, construction, international freight forwarding, foreign trade, automotive service, communication, banking, and aviation.