Power Capital Global Ltd invests into leading Mongolian conglomerate APIP
May 16 (PCG) The Company (PCGB:LN) 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.
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.
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