The Company is pleased to announce that it has subscribed,
effective 10th May 2012, through its wholly owned
subsidiary PCG Mongolia Limited, for a 1.2% equity stake in
Asia Pacific Investment Partners Limited ("APIP").Total
consideration for the Investment is US$2 million
(approximately £1.26m). This investment was made as part of
a US$15 million private placing by APIP.
Incorporated in Hong Kong in 2001, APIP (www.apipcorp.com) has 11
operating subsidiaries in Mongolia, with a focus on real
estate, cement, financial services and mining. APIP is
strategically positioned to capitalize on Mongolia's
projected growth in GDP. In the year ended 31 December
2010, APIP had audited consolidated revenues of US$15.3m
and profits after tax of US$7.1m. At that date,
consolidated net assets amounted to US$13.2m. APIP is
looking to list within the next fifteen months in either
Hong Kong or London.
The Company believes that this direct investment in
Mongolia's leading foreign invested conglomerate will
provide the Company with fast track opportunities in the
burgeoning natural resources sector in Mongolia. APIP owns
the third largest cement producer in Mongolia, with total
production of 34,000 tons in 2011 and a total plant
capacity of 80,000 tons. The Company has already signed a
framework agreement for the supply of cement clinker to
APIP, sourced from the Inner Mongolia region of China. A
number of other trading and development opportunities with
APIP are under investigation.
Simon Dewhurst, the Company's CEO, has been appointed to
the board of APIP with immediate effect.
Funding for the Investment has been provided by way of a
twelve-month LIBOR +3% revolving loan facility from Power
Capital Forex Management Limited, a company controlled by
Kung Min Lin. The facility is deemed to be a related party
transaction for the purposes of Rule 13 of the AIM Rules
for Companies. The directors, other than Kung Min Lin (who
has taken no part in the Board's consideration of the
loan facility), consider, having consulted with Northland
Capital Partners Limited, the Company's Nominated
Adviser, that the terms of the loan facility with Power
Capital Forex Limited are fair and reasonable so far as the
shareholders of the Company are concerned.
The Company announced on 12 March 2012 that it had signed a
term sheet to subscribe for a 30% equity stake in TSI
Holdings Limited ("TSI") (the "TSI Investment"). Total
consideration for the TSI Investment is US$2 million
(approximately £1.26m) and the subscription is subject to,
inter alia, due diligence. Completion of due
diligence matters has been extended from the original
timetable of 4 to 6 weeks. A further announcement
will be made in due course.
distributed by |