10th Nov 2008 13:50
European Islamic Investment Bank plc
10 November 2008
EIIB announces private equity investment in DiamondCorp
European Islamic Investment Bank plc ("EIIB") announces that its Private Equity business has invested £1.8 million in DiamondCorp plc ("DiamondCorp"), the South African diamond mining company. Following the investment, EIIB will have a 9.735% shareholding in DiamondCorp. DiamondCorp will offer to EIIB representation on DiamondCorp's Board.
EIIB launched its Private Equity and Corporate Advisory business in April 2008 to invest in Sharia'a compliant private equity transactions. The business, headed by Robin Henshall and supported by Marcus Scott, focuses on Europe, the Middle East and Africa and targets the Natural Resources, Energy, Agriculture, Real Estate, Transport & Logistics, Consumer Luxury Goods, Retail and Support Services sectors.
DiamondCorp is a South African diamond mining company listed on the Johannesburg Stock Exchange and the AIM market of the London Stock Exchange. The Company is developing the Lace kimberlite mine ("Lace") and the project, which is more than twelve months ahead of schedule, will begin mining before the end of 2008. At peak production, Lace is expected to produce more than 500,000 carats of gem diamonds per year.
Robin Henshall, Head of Private Equity and Corporate Advisory, said: "We are delighted that our Private Equity business has already delivered its first investment. DiamondCorp is a perfect example of our target strategy; the company has a highly experienced management team, the business is producing revenue and the profit potential is highly attractive. The diamond market has strong underlying fundamentals, including the long-term supply shortage which, we believe, will lead to a strengthening in diamond prices. DiamondCorp has excellent prospects and EIIB's investment will enable the Company to maximise its potential."
Ends
For further information:
EIIB plc Tel: +44 (0)20 7847 9900
Robin Henshall
Head of Private Equity & Corporate Advisory
Evolution Securities Limited Tel: +44 (0)20 7071 4300
Bobbie Hilliam
Fishburn Hedges Tel: +44 (0)20 7839 4321
Michelle James/Riz Issa
Notes to editors:
About EIIB:
EIIB was incorporated in January 2005 and received its FSA authorisation in March 2006. It commenced business in April 2006 and completed its IPO and was admitted to London's AIM market in May 2006.
EIIB services a market for sharia'a compliant investment banking services in Europe, the Middle East and Asia. Sharia'a compliant banking is generally regarded as one of the fastest growing sectors in the financial services industry.
Headquartered in London, EIIB is a fully Sharia'a compliant investment bank that provides products and services in the following areas:
- Private Equity and Corporate Advisory
- Treasury and Capital Markets
- Asset Management
- Real Estate
- Sharia'a Advisory
The shareholders of EIIB include Gulf and European based individuals and institutions.
About DiamondCorp:
DiamondCorp is listed on the main board of the JSE Limited and the AIM Market of the London Stock Exchange. The Company is developing the Lace kimberlite mine in the Free State Province of South Africa.
Phase One of the Lace mine was commissioned a year ago, and recovers diamonds from tailings re-treatment. Phase Two involves re-opening the underground workings to access more than 38 million tonnes of kimberlite containing an estimated 14 million carats.
Phase Two, which is more than 12 months ahead of schedule, will see the commencement of kimberlite mining before the end of this year. At peak production, Lace is expected to produce more than 500,000 carats of gem diamonds per year.
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