Re: IB Daiwa

25 Jun 2007 10:15

Crosby Capital Partners Inc25 June 2007 Crosby Capital Partners Inc. 25 June 2007 IB Daiwa Announces the Commencement of Procedures for the Initial PublicOffering of Darcy UK Shareholders should be aware that IB Daiwa Corporation ("IB Daiwa" - Jasdaq3587) has today announced that it has commenced procedures for the initialpublic offering of Darcy UK. An English translation of the full announcement isavailable on IB Daiwa's website, www.ibdaiwa.co.jp, and a summary is providedbelow. Crosby owns, through two wholly owned subsidiaries, 102,425,000 shares,representing 24.02% of IB Daiwa's issued share capital. The holdings haveremained unchanged from the 2006 Annual Report of Crosby and are classified as 'financial assets at fair value through profit and loss' and are, thereforemarked to market with gains and losses being recognised in the income statement. Announcement on the Commencement of Procedures for the Initial Public Offering of Darcy UK Darcy Energy Holdings UK, Ltd. ("Darcy UK"), a consolidated subsidiary of IBDaiwa Corporation (the "Company"), engages in onshore and offshore oil and gasexploration, development, and production business in the Gulf of Mexico area inthe U.S. through its consolidated subsidiaries (together, the "Darcy Group").Since the Company's acquisition of the Darcy Group in December 2005, the DarcyGroup has completed several acquisitions of production, development andexploration assets, and significantly expanded its reserve base. In order tofully exploit the newly acquired assets and produce the reserves from them tounlock value, the Darcy Group must raise capital. The Company and the Darcy Group have concluded that listing Darcy UK on the AIMmarket of the London Stock Exchange in the UK ("AIM"), where numerous oil andgas companies are traded, will allow Darcy Group to have a platform to accessthe capital markets efficiently on an on-going basis. As such, Darcy UK hasappointed Matrix Corporate Capital LLP as its NOMAD (*) to explore thefeasibility of an initial public offering ("IPO") on AIM. Summary for the IPO • Darcy Group's entity to be listed: Darcy Energy Holdings UK, Limited ** • Market: AIM of the London Stock Exchange • Date of admission (tentative): Early August 2007 • Valuation and Size of the IPO: To be decided Impact of IPO on the Darcy's Group's Status in the Company • Subject to the valuation and the size of the IPO, the Company'sownership in the Darcy Group may be diluted to a level which will make the DarcyGroup cease to be a consolidated subsidiary of the Company and become anaffiliate of the Company. At present, no final decision has been made to proceed with an IPO althoughpreparations are now underway to begin discussions with potential investors.There is still a possibility that the IPO will not occur or that it could bedelayed beyond the August target date, if the NOMAD does not accept the IPO orthe Company and the Darcy Group find the valuation and/or the size of the IPOunacceptable after the marketing roadshow. The Company will further inform the market when the IPO becomes definitive andany impact to the Company's financial forecast for FY2007 other than what hasbeen previously disclosed is known. * A NOMAD is responsible to the London Stock Exchange for assessing theappropriateness of an applicant for AIM, and for advising and guiding an AIMcompany on its obligations under the AIM Rules for Companies. ** Darcy Energy Holdings UK, Limited intends to change its name to LeedPetroleum PLC before the IPO. ABOUT CROSBY CAPITAL PARTNERS Crosby Capital Partners Inc. is a leading independent deal-focused Asia-orientedmerchant banking and asset management group. Crosby is quoted on the AIMmarket of the London Stock Exchange. Further details can be found on theCompany's website www.crosby.com. For further information on Crosby please contact: Steve Fletcher, Chief Operating Officer on +44 20 7590 2800 Ends This information is provided by RNS The company news service from the London Stock Exchange