13th Mar 2008 07:00
Origo Sino-India PLC13 March 2008 13 March 2008 Origo Sino-India PLC Investment by GLG Funds and Trading Update Origo Sino-India Plc ("Origo" or the "Company") (LSE: OSI), the investment andstrategic consulting company focused on the private equity markets of China andIndia, is pleased to announce that funds managed by GLG Partners LP ("GLGFunds") are investing approximately £17.1 million in the Company via a placingof new ordinary shares (the "Placing"). Following completion of the Placing, GLGFunds will have a 29.6% interest in the Company's issued ordinary share capital. The Company also announces today a trading update including the intent to expandits asset management and consultancy activities in the current year. Investment by GLG Funds The Company has agreed to place 28,286,499 new ordinary shares with GLG Funds,raising approximately £17.1 million (equivalent to an average Placing price pershare of approximately 60.4p). Following completion of the Placing, GLG Fundswill own approximately 28.9 million ordinary shares in Origo, representing a29.6% interest in the Company's issued ordinary share capital. The Placing forOrigo was undertaken by Liberum Capital Limited, as financial adviser andbroker. The net proceeds of the Placing are expected to be used for new portfolioinvestments, including co-investment opportunities with Origo Resource PartnersLimited ("ORP"), the AIM and CISX listed fund focused on the private equityopportunities related to the Chinese and Indian natural resource sectors, towhich the Company provides consultancy services, and for general working capitalpurposes. In addition, Origo and GLG Partners LP have signed a memorandum of understandingto explore asset management and advisory opportunities in China, India and othermarkets. Moreover, Origo and GLG Partners LP have entered into an agreementwhereby Origo will provide GLG Partners LP research services for a period ofthree years for a fee of £3 million. The Placing is conditional on shareholder approval and a circular and notice ofextraordinary general meeting are expected to be sent to shareholders latertoday. Admission of the new ordinary shares to trading on the AIM is accordinglyexpected to be on 31 March 2008. Trading Update Origo's directors are pleased with the progress of the Company during 2007, amilestone of which was the launch into asset management activities with thesuccessful fundraising for ORP. The Company intends to expand its assetmanagement activities in the current year, building on the opportunities arisingfrom its presence in the China and India private equity markets. The Company's portfolio investments have also performed well during 2007, withappreciations in the values of a number of Origo's investments. In particular,the Directors expect the Company's holding in the Chinese security softwarecompany, Rising Technology, to be valued in the Company's accounts for the yearended December 31, 2007 at a substantial uplift to its initial cost of US$7million. The Company expects to publish its accounts for the year ended December 31, 2007in early May 2008. Commenting on today's announcements Chris Rynning, CEO of Origo, said: "We are extremely proud and excited to attract a shareholder such as GLG toOrigo and we are looking forward to work with GLG to expand both their and ourbusiness in China and India." ENDS Further information: Origo Sino-India PLC +86 1390 124 6417Chris [email protected] Nominated Adviser:Smith & Williamson Corporate Finance Limited +44 (0)20 7131 4000Azhic Basirov Financial Adviser and Broker: +44 (0)20 3100 2223Liberum Capital Limited Simon Atkinson Public Relations: +44 (0)20 7321 0000Aura FinancialMichael Oke/Andy Mills Notes to editors: Origo Sino-India Plc ("Origo"): • Origo is an established private equity investor and strategicconsultancy business, which provides its shareholders with exposure to growthopportunities and private equity returns in China and India. • Origo's business model is to generate capital gains from privateequity investment in growth companies from which it also generates fees forconsultancy services related to further fundraisings, M&A and strategicdevelopment. • Origo is aligned with two major institutions which provide a source ofhigh quality deal flow. In China, Origo works closely with China Equity, aleading 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 CapitalMarkets, one of the longest established companies in the Indian Capital Markets.A former chairman of 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 milliongross of new money via a placing of 25,673,238 Ordinary Shares at 50 pence pershare. Each Ordinary Share carried a warrant exercisable at 55p. • Origo has a significant portfolio of investments in a range ofindustrial sectors, such as: mobile applications and content; natural resources;furniture; food and beverage; online gaming; anti-virus software; and bioenergy. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
OPP.L