Further investment
May 28 2009 - 2:00AM
UK Regulatory
TIDMORP TIDMOSI
RNS Number : 8986S
Origo Resource Partners Limited
28 May 2009
28 May 2009
Origo Resource Partners Limited
Further investment in IRCA
Origo Resource Partners Limited ("ORP" or the "the Fund") announces a follow-on
investment of up to US$2.5 million ("the Investment") in IRCA Holdings Limited
("IRCA").
The Investment, which will be funded from ORP's existing cash resources, will
enable IRCA to capture a number of opportunities to substantially enhance its
growth and profitability. The Investment will be structured via an extension of
the convertible loan stock arrangement under which Origo Sino-India PLC ("Origo"
or "OSI") and ORP together invested a total of US$5 million in IRCA (at that
time named IGH Limited) on a 30:70 basis, as announced on 22 April 2009.
Following completion of the Investment ORP will have an equity interest of up to
46% in IRCA assuming conversion of the loan stock.
IRCA and its subsidiary companies (the "IRCA Group") will use the funds
committed by ORP to:
* Acquire a controlling stake in IRCA Middle-East (currently a 45% joint venture),
allowing consolidation of this business into IRCA's group accounts;
* Establish a new joint venture in Saudi Arabia which will enable the IRCA Group
to enter the oil-service industry in conjunction with an established local
partner;
* Assume 100% ownership of IRCA India, which provides software, allowing the IRCA
Group to reduce software development fees and increase its intellectual property
base;
* Establish a risk management consultancy offering through the expansion of the
existing IRCA India business; and
* Undertake various growth initiatives.
Commenting on today's announcement, Chris Rynning, Executive Director of ORP
said:
"We are confident that a significant opportunity exists for IRCA to expand its
business in the fast growing Middle Eastern market whilst also increasing its
footprint in the higher margin software sector.
"I am delighted that we are continuing to build upon the close relationship we
have established with IRCA with the goal of delivering returns to ORP's
shareholders."
ENDS
Further information:
+-------------------------------------------------+------------------------------+
| Origo Resource Partners | +86 1390 124 6417 |
| Chris Rynning | +86 1351 106 1672 |
| Niklas Ponnert | |
| | |
+-------------------------------------------------+------------------------------+
| Nominated Adviser: | +44 20 7131 4000 |
| Smith & Williamson Corporate Finance Limited | |
| Azhic Basirov | |
| | |
+-------------------------------------------------+------------------------------+
| Broker: | +44 20 3100 2223 |
| Liberum Capital Limited | |
| Simon Atkinson | |
| | |
+-------------------------------------------------+------------------------------+
| Public Relations: | +44 20 7321 0000 |
| Aura Financial | |
| Andy Mills / Nina Legge | |
| | |
+-------------------------------------------------+------------------------------+
Notes to editors:
IRCA
* IRCA aims to become the leading global provider of operational and environmental
risk management solutions to industry, focused on the mining,
power, construction and manufacturing industries and on the public sector.
* The IRCA Group will comprise a network of 15 subsidiaries across 5
continents. IRCA is actively seeking to expand its international roll-out, both
organically and by acquisition, in the key Asia Pacific, South American and
Middle East markets.
* In China specifically, the demand for operational and environmental risk
management services is largely driven by legislative compliance and mandatory
budget allocations. IRCA expects recent legislative changes in that market to
represent a significant growth opportunity in the years ahead.
* The businesses of the IRCA Group achieved, on a pro forma basis for the
financial year ended 31 December 2008, revenues of approximately $19 million,
pre-tax losses of approximately $0.8 million, including approximately $0.7
million of one-off costs, and had net liabilities at year end of approximately
$0.2 million. The directors of IRCA expect the IRCA Group to experience revenue
growth in the 2009 financial year and to be profitable.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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