Origo Partners PLC Partial Niutech Divestment (9293K)
July 13 2017 - 2:00AM
UK Regulatory
TIDMOPP TIDMOPPP
RNS Number : 9293K
Origo Partners PLC
13 July 2017
13 July 2017
Origo Partners plc
("Origo", the "Company" and together with its subsidiaries the
"Group")
Partial Niutech Divestment
Origo is pleased to announce the sale of up to a 5.9% beneficial
interest in Jinan Heng Yu Environmental Protection Technology Co.,
Ltd. ("Heng Yu"), the operating company of Niutech Energy Ltd
("Niutech"), an Origo investee company, for gross cash proceeds of
up to RMB 28.5 million (approximately US$4.2 million) in two
tranches (the "Disposals").
Heng Yu listed on China's National Equities Exchange and
Quotations (NEEQ), generally referred to as China's "New Third
Board", in May 2016 and, prior to the Disposals, the Company held
an 18.4% indirect beneficial interest in Heng Yu via Origo's 95.3%
holding in Niutech.
Following the expiration of lock-up restrictions put in place in
connection with the NEEQ listing of Heng Yu, Origo is pleased to
announce that it has entered into arrangements to dispose of up to
a 5.9% beneficial ownership of Heng Yu (representing approximately
30% of the Company's total beneficial interest in Heng Yu), to
Chinese institutional and other investors, in two tranches.
The first tranche of the Disposals has completed and the Group
has received RMB 23.8 million (approximately US$3.5 million). An
additional RMB 4.7 million (approximately US$0.7 million) is
expected to be received shortly, on completion of the second
tranche of the Disposals which remains subject to customary closing
conditions.
Cash receipts of the Disposals, net of applicable taxes, costs
and commissions, are expected to amount to approximately 85% of
gross proceeds and will be applied towards Origo's working capital
requirements. Any repatriation of capital from China is subject to
restrictions and standard processes. It is unclear at the present
time how long the repatriation process will take in this
instance.
The gross cash proceeds of the Disposals imply a valuation of
the Company's total pre-disposal beneficial interest in Heng Yu of
approximately US$13 million. The audited carrying value of Origo's
18.4% beneficial interest in Niutech as at 31 December 2016 was
US$14.2 million, having increased from an unaudited carrying value
as at 30 June 2016 of US$11.5 million (original investment cost of
US$6.35 million).
Following the Disposals, the Company will continue to hold a
12.4% indirect beneficial interest in Heng Yu.
Niklas Ponnert, a Director of the Company and of Origo Advisors
Ltd, the Company's Investment Consultant, also serves as a director
of Niutech and Heng Yu.
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
Special note concerning the Market Abuse Regulation
Certain of the information contained in this announcement is
deemed to constitute inside information for the purposes of article
7 of Regulation 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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