13th Feb 2007 12:56
Crosby Capital Partners Inc13 February 2007 Crosby Capital Partners Inc. ("Crosby") notes the IB Daiwa press release ofFebruary 13 2006. Crosby owns, thoroughly two wholly-owned subsidiaries,102,425,000 shares (24.02%) of the issued share capital of IB Daiwa. Theholdings have remained unchanged from the 2006 Interim Report of Crosby, and aredesignated as 'financial assets at fair value through the profit and loss' andare, therefore marked to market with gains and losses being recognised in theincome statement. The full text of the IB Daiwa announcement can be found below. The original isavailable on the IB Daiwa website: www.ibdaiwa.co.jp February 13, 2007 Darcy Energy raises US$18 million of new equity investment IB Daiwa Corporation ("IB Daiwa") is pleased to announce that Darcy EnergyHoldings UK, Ltd. ("Darcy UK", the UK holding company of the Darcy Group), aconsolidated subsidiary of IB Daiwa, today signed a binding subscriptionagreement with Global Structured Finance Inc. ("GSF"). Under the terms of the subscription agreement, GSF will invest US$18 million(JPY2,178 million)(*1) by subscribing for 80.9 million new shares of Darcy UK,representing 13.4% of Darcy UK's enlarged share capital. The equity investmentimplies a total enterprise value for the Darcy Group of US$215 million(JPY26,015 million). IB Daiwa acquired the Darcy Group in December 2005 for an enterprise value ofUS$58 million (JPY7,018 million). Since that time the Darcy Group has acquiredGrand Isle, doubled its audited reserve base, and, enhanced its productioncapacity. Within the coming quarter, Darcy will further enhance its dailyproduction when the newly completed well B4 at East Cameron comes on stream. Darcy Group's strategy is to expand its reserve base and production volumethrough the development of existing fields, and the acquisition of interests inadditional assets, whilst maintaining financial flexibility and a robust balancesheet. In December 2006, to facilitate fund raising by the Darcy Group from theUK capital markets, Darcy UK was formed as the Darcy Group's new holding companyin the United Kingdom. By applying the proceeds of the investment by GSF towardsthe development of Grand Isle and other fields offshore Louisiana, acquiringinterests in additional assets, and partial repayment of loans, the Darcy groupwill be able to meet its development strategy and strengthen its balance sheet. In its financial forecast for the fiscal year ended 31 March 2007, in line withits strategy as a natural resources business trading company, IB Daiwa projecteda special gain of 1.5 billion yen through sale of shares or assets of itssubsidiary. In addition to providing the funds to develop the Darcy business,the sale of shares to GSF will enable IB Daiwa to record a gain on the issue ofthe new shares which will provide a meaningful contribution to its FY2006consolidated results, as projected in its forecast. On completion, which willtake place by 14 February 2007, IB Daiwa's ownership in Darcy UK will be reducedfrom 99.9% to 86.6%. This new equity investment endorses the set-up of Darcy UK as a vehicle toenable more flexible and attractive fund raising, and IB Daiwa's positioning asa natural resources business trading company, and demonstrates its ability toidentify attractive assets and then build their value. IB Daiwa continues tolook for opportunities to capitalize on its asset portfolio and generate returnsfor its shareholders. *1 - Exchange rate used in the announcement: 121 yen per US dollar About the Darcy Group The Darcy Group is in the business of oil and gas development and production inthe state of Louisiana, the U.S.A. Through its wholly-owned subsidiary DarcyEnergy, LLC, the Darcy Group owns working interests in certain oil and gasproducing reservoirs, exploration prospects and development prospects in theU.S. These working interests are located in the East Cameron blocks 317 and 318field (working interest: 25%), the Main Pass blocks 64 and 65 field (workinginterest: 21.7%), and the Grand Isle blocks 95 and 100 field (working interest:100%, subject to the right of a third party to acquire up to 25% of the DarcyGroup's working interest). As of February 2007 the Darcy Group's independentlyaudited 2P and 3P net revenue interest reserves were 60.5 bcfe and 160.9 bcfe,respectively. About GSF GSF is a privately-held investment holding company based in the United Kingdom.The Crosby Active Opportunities Fund, which is managed by Crosby AssetManagement, holds a direct stake in GSF through a convertible note. The proceedsfrom the convertible note are being used by GSF to fund the investment in DarcyUK. Crosby Capital Partners(*2) does not have any equity interest in the CrosbyActive Opportunities Fund. IB Daiwa Oil & Gas Portfolio Map: http://www.ibdaiwa.co.jp/portfolio/ibd_en/map.html For further information please contact: IB Daiwa Tel. +81 3 3264 1370 (Weekdays15:00 - 17:00) About Crosby Capital Partners Inc. Crosby Capital Partners Inc. ("Crosby) is a leading, independent, deal-focused,Asia-oriented merchant banking and asset management group. Crosby is quoted onthe London Stock Exchange's AIM market (CSB). Further information concerning theoperations and financials of the Group can be found at: www.crosby.com. The Crosby Active Opportunities Fund ("CAOF") was launched in December 2006 asCrosby's first hedge fund. The Fund focuses on Asian and Australasian eventdriven active investment strategies, unlocking value in intrinsically mis-pricedcomplex, opaque situations. CAOF targets absolute unleveraged returns in excessof 25% pa. Crosby Asset Management manages the fund. Crosby does not have andequity interest in the CAOF. Contact DetailsSteve Fletcher, Chief Operating Officer+44 207 590 [email protected] * 2 - The parent of IB Daiwa's largest shareholder This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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