Origo Sino-India PLC
13 March 2008
13 March 2008
Origo Sino-India PLC
Investments in E-Bill Holdings and Fomento International
Origo Sino-India Plc ('Origo' or the 'Company') (LSE: OSI) is pleased to
announce a new investment in E-Bill and a further investment in Fomento
International Ltd with Origo Partners Limited ('ORP' or 'the Fund').
Investment in E-Bill
Origo has entered into agreements to acquire an equity stake of approximately 5%
in E-Bill China Holdings ('E-Bill'), a Chinese electronic payment services
provider, for an investment of US$1.3 million.
Headquartered in Shenzhen in the southern Chinese province of Guandong, E-Bill
operates 'E-piao Tong,' a branded electronic payment and delivery network.
Available through affiliated retailers, the E-piao Tong service offers consumers
a convenient way of settling bills and purchasing digital goods,
including mobile-top up vouchers, lottery tickets and online gaming. By joining
the E-Bill network, affiliated merchants are able to reduce inventories, improve
cash-flow management and tap distribute digital goods and services at no
marginal cost.
The E-piao Tong network handled around RMB 5 billion (over US$700 million) in
transactions in 2007. The directors of the Company believe E-Bill's proven
business model and management team will enable it to grow significantly as
China's electronic payment sector expands.
Origo was joined by two other investors, Sequoia Capital China and China Equity
International Holdings, in the fundraising, bringing the total amount raised by
E-bill to US$6.5 million. These proceeds will be used to expand the E-Bill
network and further broaden E-bill's service offering.
The transaction is subject to normal closing conditions for a transaction of
this kind and is expected to complete in April.
Investment with ORP
In a separate announcement, ORP, the CISX and AIM listed natural resource fund
to which the Company provides consultancy services, announced today that it has
completed its third and fourth investments in the two months since the Fund was
established.
ORP has agreed to invest up to US$20 million in iron ore producer Fomento
International Ltd ('FIL'), an existing Origo investee company. Origo will
exercise its co-investment right and subscribe for US$3 million of the US$20
million allocation for ORP. On completion, ORP will hold 5.1% interest in FIL
and the investment by Origo will equate to an additional 0.9% interest in that
company.
The Fomento group is a leading Indian privately held vertically integrated
mining group with operations in the iron ore rich states of Goa, Karnataka and
Maharashtra. The investment in FIL will, following the intended consolidation of
the Fomento group companies, provide the Fund's shareholders with exposure to
the strong market for iron ore via a group with a 50 year operating record and
significant opportunities for further production growth. As at 31 March 2007,
the companies which operate as the Fomento group had in aggregate an unaudited
net asset value of approximately 4,882 million Indian rupees and unaudited
profits before tax for the period then ended of approximately 3,048 million
Indian rupees (approximately US$121.3 million and $75.8 million respectively,
based on current exchange rates). The investment in FIL will be made using the
Company's existing cash resources.
ORP has also announced today an investment of US$1 million for a 4.8% stake in
Staur Aqua A/S, a special purpose holding vehicle which holds around 43.8% of
Aqualyng A/S ('Aqualyng'). Aqualyng builds and operates desalination plants on
long-term contracts with minimum volume commitments. Having commissioned turnkey
desalination plants across Europe, the Middle East and Asia, the company has
secured several new projects in the last year.
Commenting on today's announcements Chris Rynning, CEO of Origo, said:
'We continue to identify a range of opportunities in the fast growing markets of
India and China and are positioning the Company to capture these opportunities.'
'Our investments in E-Bill and Fomento underline our focus on growing and
sustainable businesses where our consultancy and financing approach can assist
the respective investee company management teams to achieve their development
objectives.'
ENDS
Further information:
Origo Sino-India PLC +86 1390 124 6417
Chris Rynning
chris@origoplc.com
Nominated Adviser:
Smith & Williamson Corporate Finance Limited +44 (0)20 7131 4000
Azhic Basirov
Broker:
Liberum Capital Limited +44 (0)20 3100 2223
Simon Atkinson
Public Relations: +44 (0)20 7321 0000
Aura Financial
Michael Oke/Andy Mills
Notes to editors:
Origo Sino-India Plc ('Origo'):
• Origo is an established private equity investor and strategic
consultancy business, which provides its shareholders with exposure to growth
opportunities and private equity returns in China and India.
• 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 is aligned with two major institutions which provide a source of
high quality deal flow. In China, Origo works closely with China Equity, a
leading private equity firm, whose chief executive is a member of Origo's board.
In India, Origo has entered into a memorandum of understanding with SBI Capital
Markets, one of the longest established companies in the Indian Capital Markets.
A former chairman of the State Bank of India is also a member of the board of
Origo.
• On its admission to AIM in December 2006 Origo raised £12.8 million
gross of new money via a placing of 25,673,238 Ordinary Shares at 50 pence per
share. Each ordinary share carried a warrant exercisable at 55p.
• Origo has a significant portfolio of investments in a range of
industrial sectors, including mobile applications and content; natural
resources; art and paper products; furniture; food and beverage; online gaming;
anti-virus software; and bio energy.
This information is provided by RNS
The company news service from the London Stock Exchange