11th May 2006 07:03
London Asia Chinese Private Equity11 May 2006 11 May 2006 London Asia Chinese Private Equity Fund Limited ("LACPEF" or "the Fund") First investments made LACPEF, the China focused investment fund, announces that it has made its firsttwo investments, for a total consideration of £2.5 million. The Fund has invested £2.0 million for a 19% stake in Dalian Business InstituteLtd ("DBI"), a profitable Chinese education business based in Dalian, LiaoningProvince, China. DBI has six colleges and five faculties on the site, providing3-year diploma, degree and distance learning courses. Being adjacent to Korea,Japan and the far eastern area of Russia, Dalian is within the central region ofNortheast Asia. With this advantageous geographical position and convenienttransportation, DBI has been able to attract higher margin overseas students.Dalian is the capital of Liaoning Province, and was recently voted the best cityin China to live Victor Ng, director of the Fund, is joining the Board of DBI, which will beseeking to list on the UK's Ofex stock market in the near future, sponsored byLondon Asia Corporate Finance. The funds invested will enable DBI to continueto expand its facilities to meet growing demand for its courses. DBI producedpro forma accounts for the year ended 31 July 2005 showing profits of £1.7million. The Fund has also agreed, subject to finalisation of terms, to invest an initial£0.5 million for an approximate 10% equivalent stake in FENet, a leading Chinesebusiness intelligence ("BI") applications and solutions provider, based inGuangdong Province. FENet's software products enable companies to analyse datafrom various sources within an organisation to provide management with detailedinformation for decision making and strategic purposes. Founded in 1995, FEnethas branches in Beijing, Shanghai and Chengdu, with over 150 employees. FENetachieved profit after tax of £1.1 million for the year ended 31 December 2005. John Manser, Chairman of LACPEF said: "Investor response to the fund has beenstrong and so it is particularly pleasing that we are announcing our first twoinvestments. The managers have sourced promising investment opportunities and welook forward to announcing further investments in due course." Simon Littlewood, Executive Director of LACPEF, commented: "Following theraising of the Fund in March, we have spent the last six weeks finalising theinvestment terms on a number of transactions for the Fund, with these the firsttwo to reach closure. Both are established, profitable businesses with goodgrowth prospects in expanding sectors in China." For further information please visit www.londonasia.com or contact: John West/Matt Ridsdale Simon LittlewoodTavistock Communications London Asia Capital plcTel: 020 7920 3150 Tel 020 7355 7928 Hugh FieldCollins Stewart LimitedTel: 020 7523 8000 About Dalian Business Institute DBI is a Jersey incorporated company, with a 25 year contract for the managementof Dalian Business Institute in Liaoning Province, China ("DBIC"). Founded in 1997, DBIC is located in the hub of Dalian city in Liaoning Province.It is a nationally accredited comprehensive three-year college focusing onbusiness and arts subjects, with its college diplomas recognised by the ChineseMinistry of Education. There are currently over 5,000 students, based in thecampus in Liaoning Province, China. There are six colleges and five faculties onthe site, providing 3-year diploma, degree and distance learning courses ineight specific areas: Business Management; International Trade; InternationalAccounting & Finance; Information Technology; International Tourism; ForeignLanguages; Business Laws; and Arts. About FENet Co. Limited Founded in 1995, FEnet is a leading provider of BI applications and solutions.Headquartered in Guangdong Province, China, with branches in Beijing, Shanghaiand Chengdu, it has over 150 employees. BI refers to the methodology designedto analyse data from various sources within an organisation to providemanagement with fast and reliable information for decision making and strategicpurposes. Additional info can be found on the Company's web site www.fenet.com.cn This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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