Origo Partners PLC Heng Yu - PRC New Third Board Listing Approval (0234X)

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RNS Number : 0234X

Origo Partners PLC

03 May 2016

3 May 2016

Origo Partners plc

("Origo" or the "Company")

Heng Yu - PRC New Third Board Listing Approval

Origo Partners Plc ("Origo" or the "Company") is pleased to announce that Jinan Heng Yu Environmental Protection Technology Co., Ltd. ("Heng Yu"), the operating company of Niutech Energy Ltd ("Niutech"), an Origo investee company, has received final approval for a listing on China's National Equities Exchange and Quotations (NEEQ), generally referred to as China's "New Third Board".

The market introduction is expected to complete during the course of May 2016. A placing of new Heng Yu shares to investors is planned for later this year. Heng Yu's appointed sponsor and broker is Guosen Securities Co., the eighth largest brokerage firm in China by assets, according to a 2014 ranking by the Securities Association of China. Deheng Law Offices, a top 5 Chinese law firm, is acting as Heng Yu's legal advisor on the transaction.

At the end of 2015, a total of 5,129 companies with a combined market capitalisation of RMB2.46 trillion (US$374 billion) were trading on China's New Third Board. In 2015, a total of RMB121 billion (US$18.4 billion) was raised on the exchange, over nine times that raised in 2014.

Following completion of the listing, the shares of all current shareholders will be subject to lock-up restrictions until November 2016. As such, the listing will not represent an opportunity for Origo to realise part or all of its investment in Heng Yu in the short term. However, by providing access to a domestic Chinese investor base, Origo expects the New Third Board listing to facilitate a realisation of this investment over the course of the Company's revised Investing Policy period, adopted by Origo shareholders on 20 November 2014.

The unaudited carrying value of Origo's 21.1% interest in Niutech as at 30 June 2015 was US$11.81 million (original investment cost of US$6.35 million). Post the last balance sheet date, Niutech and its group companies have been reorganized ahead of the New Third Board listing to comply with relevant regulatory, listing and tax requirements. Shares have also been issued under Heng Yu's ESOP plan. As a result, Origo now owns 95.3% of Niutech, which in turn has a beneficial interest of 20.0% in Heng Yu.

Niklas Ponnert, a Director of Origo and Origo Advisors Ltd, the Company's Investment Consultant, has been a director of Niutech and will continue to serve on its board. He has also been appointed to the board of Heng Yu.

A further announcement will be made by the Company in due course.

For further information about Origo please visit www.origoplc.com or contact:

 
 Origo Partners plc                        niklas@origoplc.com 
  Niklas Ponnert 
 Nominated Adviser 
  Smith & Williamson Corporate Finance 
  Limited 
  Azhic Basirov 
  Ben Jeynes                               +44 (0)20 7131 4000 
 Public Relations 
  Aura Financial 
  Andy Mills                               +44 (0)20 7321 0000

This information is provided by RNS

The company news service from the London Stock Exchange

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May 03, 2016 04:45 ET (08:45 GMT)

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