5th Sep 2013 10:42
LONDON (Alliance News) - Origo Partners PLC Thursday said its pretax losses widened due to weakening growth in China and political instability in Mongolia.
Origo, which holds investments primarily in private companies across varying sectors in China and Mongolia, said it would cut staff numbers by half and put new investments on hold indefinitely.
Origo said its pretax loss widened to USD40.1 million for the six months ended June 30, compared with USD37.3 million for the corresponding period last year.
Origo said it is aiming to significantly reduce operating costs; halt new investments until further notice; renew focus on converting assets to cash; and postpone its planned expansion in Myanmar. These changes to strategy were set out in a trading statement released on August 14.
The company is being hit hard by the recent fall in global commodity prices, partly the result of an economic slowdown in China, and political upheaval in Mongolia, though it said the situation in Mongolia is improving following the re-election of the incumbent government.
In early August, Origo's then fourth-largest shareholder, Morgan Stanley Securities Limited, sold its entire shareholding of 8.19%.
Origo shares were Thursday quoted at 9.75 pence, down 0.62 pence, or 6.0%.
By Samuel Agini; [email protected]; @samuelagini
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