OPP.L Regulatory News (OPP)

4 Sep 2007 07:01

Origo Sino-India PLC04 September 2007 Press release 4 September, 2007 Origo enters global bioenergy sector in partnership with RIBEC Origo Sino-India Plc ("Origo") (LSE:OSI), the investment and strategic advisorycompany focused on the private equity markets of China and India, has enteredinto definitive agreements with Roshini International Bio Energy Corporation Ltd("RIBEC") to create an international joint venture focused on the renewablebioenergy sector. Origo has taken a 20% equity position in RIBEC, whileextending a convertible note of up to US$2,000,000 and retaining the right toinvest an additional US$6 million in a pre-IPO private placement. Headquartered in Hyderabad, India, RIBEC has the world's largest plantation ofnon-edible, tree-borne feedstock with more than 40 million trees and seedlings.As a fully integrated bioenergy company, RIBEC is involved in the wholebioenergy value chain from plantations to refining and trading of biodiesel,bioethanol, biogas and biofertilisers. RIBEC is achieving rapid growth, withun-audited revenues for the financial year ending March 30, 2007 being US$5.87million, and EBITDA at US$4.4 million. With operations and representation inIndia, China, Brazil and Africa, RIBEC intends to list on a major internationalstock exchange to provide further funding for its rapid expansion. Established in 1996, RIBEC has more than a decade of research and developmentexpertise and is a producer of non-edible feedstock from dry wasteland areas.RIBEC is a leading supplier of Pongamia Pinnata, a non-edible anddrought-resistant tree with high yields of crude oil that recaptures rapidlygrowing greenhouse gas emissions and generates income to poor farmers and ruralcommunities. RIBEC also grows Jatropha, a source of biodiesel whose residue canalso be processed into biomass to power electricity plants. RIBEC is in close negotiations with a major international energy company about apossible joint venture for plantations and the refining of biofuel in certaingeographical sectors. In addition to taking a 20% equity position in RIBEC, Origo has extended acredit facility under which Roshini may draw down up to US$2,000,000 for workingcapital purposes and operational expenses associated with the expansion ofRIBEC's feedstock. The note is repayable in full in the event of an externalfinancing round, or convertible into equity at the discretion of Origo at a 20%discount to the then applicable price per share. Origo has also been retained asa strategic consultant to assist RIBEC's expansion and fundraising activities. Vinay Ganga, Managing Director for India of Origo Sino-India Plc, said: "We arepleased to have taken a substantial equity position in the world's largestnon-edible, tree-borne feedstock producer. The world's growing and unmet need ofbiofuel brings enormous business and growth opportunities for integratedproducers such as RIBEC." Anil Reddy, CEO of RIBEC, said: "RIBEC needed a financial and strategic partnerrapidly to expand and list on a global stock exchange. Origo provided the idealcombination of finance, management and exposure to India, China and Africa." Chris Rynning, Chief Executive of Origo, said: "This position validates Origo'sbusiness model and execution capabilities in the area of natural resources. Weare pleased to fund the roll-out of RIBEC while locking in the opportunity tosubscribe for further equity in this highly promising company." Further information: Origo Sino-India PlcChris Rynning +86 1390 124 6417chris@origoplc.com Nomad and broker:Seymour PierceJohn Depasquale +44 (0) 20 7107 8000 Media enquiries:Capital MS&LPeter Curtain / James Madsen +44 (0) 20 7307 5330james.madsen@capitalmsl.com Notes to editors: Origo Sino-India Plc ("Origo"): Origo is an established private equity investor and strategic consultancybusiness, which provides its shareholders with exposure to growth opportunitiesand private equity returns in China and India. Origo's business model is to generate capital gains from private equityinvestment in growth companies from which it also generates fees for consultancyservices related to further fundraisings, M&A and strategic development. Origo is aligned with two major institutions which provide a source of highquality deal flow. In China, Origo works closely with China Equity, a leadingprivate equity firm, whose chief executive is on Origo's board. In India, Origohas entered into a memorandum of understanding with SBI Capital Markets, one ofthe longest-established companies in the Indian capital markets. A formerchairman of SBI is on the board of Origo. Roshini International Bio Energy Corporation Ltd (RIBEC) RIBEC manages and owns the world's largest non-edible, tree-borne bioenergyfeedstock. With captive feedstock supply from its operations and representationin India, China, Brazil and Africa, RIBEC also is an integrated processor,refiner and trader of biodiesel, ethanol, gas and fertiliser. Founded by Anil Reddy in 1996, RIBEC initially focused on research anddevelopment of Pongamia Pinnata and Jatropha Curcas feedstock in India. Whilestill growing both Pongamia and Jathropa, the company has excelled incommercialising the farming and plantation the high-oil-yielding tree Pongamia. RIBEC's competitive position stems from years of research and development ofPongamia, developing a gene bank of "alpha" genetic material that enhancesplantation yield, combined with specialised grafting, planting and irrigationtechniques developed by RIBEC. The Pongamia tree's advantages as bioenergy feedstock include: • Use of cultivable waste land does not destroy rain forest or other protected habitats;• Does not crowd out other edible food crops, which could case higher food costs for farmers;• Re-capturing or sequestering rapidly growing greenhouse gas emissions, helping alleviate global warming;• Low water irrigation requirements;• Inter-growing with other crops;• Its leaves and de-oiled cake are in demand as organic fertiliser;• Economically advantaged as Pongamia qualifies for carbon credits. RIBEC's primary business model is to work with farmers, contracting theplantations to the land owners, thereby reducing its working capital needs, withrapid growth being further facilitated by government and micro-financeinstitutions. When operating under contract farming system, RIBEC has the firstright of refusal to buy the produce from the farmers with prices set bygovernment regulated commodity pricing. This information is provided by RNS The company news service from the London Stock Exchange