12 Oct 2010 07:03
12 October 2010
Successful Portfolio Company Placing and Partial Exit
Origo Partners ("Origo") today announces that its portfolio company HaloSource. Inc. ("HaloSource" or "the Company") has completed a successful Placing ("the Placing") of new shares to institutional investors in connection with its proposed initial public offering ("IPO") on the AIM market of the London Stock Exchange. HaloSource, which is valued in the proposed IPO at US$160 million (approximately £100 million) post new money, raised gross proceeds of US$50 million which will be used to fund the Company's expansion plans.
Origo invested US$10 million in HaloSource in July 2008, to assist the Company in meeting rapidly increasing demand for its water purification and treatment business from emerging markets including China. Including warrants, which were granted at the time of the original investment into the Company, Origo had a total shareholding of 15.4% prior to the Placing.
Based upon the Placing price of HaloSource's shares, the proposed IPO delivers a 79% uplift on Origo's original investment. In line with Origo's accounting policies, the investment in HaloSource was valued at equal to cost in the non-audited accounts for the period ended 30 June 2010.
As a result of strong demand from investors seeking to participate in HaloSource's Placing and IPO, Origo has taken the opportunity to sell approximately 60% of its stake raising US$11 million in cash. As a result, Origo's stake in HaloSource will fall to 4.3%. In line with its stated strategy, Origo will use the funds raised to invest in the clean technology and natural resources sectors.
HaloSource is a clean technology group focused on water treatment and anti-microbial fabric treatment. The funds raised from the Placing and IPO will allow HaloSource to rapidly grow the distribution network for its water purification products in developing markets, in particular in China where there is significant and growing demand for low cost water purification treatment and services, and finance the construction of further manufacturing plants.
Commenting on today's news, Chris Rynning, Chief Executive of Origo said:
"We have enjoyed working with HaloSource's motivated and experienced management team over the last two years, developing the business and facilitating its expansion in China.
Following the divestment of our stake in E-Bill, Halosource is the second liquidity event for Origo in the past few weeks. This reflects both our maturing portfolio and our revised investment strategy to actively market and exit selected investments and recycling cash into new investment opportunities in China and Mongolia".
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 |
| 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.
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.