TIDMERE
RNS Number : 0145P
Eredene Capital PLC
08 July 2010
Date: 8 July 2010
On behalf of: Eredene Capital PLC ("Eredene" or the "Eredene
Group")
Embargoed until: 0700hrs
Eredene Capital PLC
· Eredene Group buys stake in India's leading port services operator
· Invests USD 11.1m (c. GBP7.3m) for a 8.22% equity share in privately owned
Ocean Sparkle Limited ("OSL")
· OSL operates a harbour fleet of 82 vessels in 18 ports across India and has
three joint ventures with the Port of Singapore Authority (Marine) in India and
a joint venture in Oman
· OSL is profitable and dividend paying. It generated GBP26.4m of revenue and
net profits of GBP5.2m in the financial year to 31 March 2009.
Eredene Capital PLC (AIM: ERE), the leading AIM quoted investor in Indian
infrastructure, announced today that its wholly-owned subsidiary has invested
USD 11.1m (c. GBP7.3m) for a 8.22% stake in OSL, India's leading port operations
and marine services company. The investment will be made using the Eredene
Group's existing cash reserves.
OSL, a privately owned Hyderabad-based company, which was founded in 1995, is
profitable and dividend paying. It generated revenue of GBP26.4m, net profits of
GBP5.2m and reported net assets of GBP27.4m in the year ended 31 March 2009.
OSL owns and manages a fleet of 82 vessels, comprising 59 tugs, 5 dredgers, 5
barges, 5 mooring boats and 8 pilot launches. It services 18 ports across India
and also has three joint ventures in India with the Port of Singapore Authority
(Marine). The OSL Group also has a joint venture operation in Oman.
OSL is the market leader in the Indian ports operations and marine services
industry and provides the full range of support services to incoming and
departing ships, such as pilotage, anchoring and berthing, and also undertakes
dredging contracts.
Alastair King, founder and Chief Executive of Eredene, commented:
"The investment in OSL is a good match for Eredene as it will complement
Eredene's existing portfolio of port services investments. We have a specialist
ports team in India. Port services is one of the key areas where we have
developed strong local partnerships. We see Indian ports and related port
services as a continuing strong growth story."
The World Bank's International Finance Corporation (IFC) is an investor in OSL
having first provided project financing for the OSL Group in 2003 and directly
investing in preference shares in OSL in June 2009. Eredene is buying the stake
from Swiss Technology Venture Capital Fund Private Ltd, which is nearing the end
of its fund life.
Enquiries:
+-------------------------------+-------------------------------+
| Eredene Capital PLC | Tel: +44 20 7448 8000 |
+-------------------------------+-------------------------------+
| Alastair King/Ranveer Sharma | www.eredene.com |
+-------------------------------+-------------------------------+
| | |
+-------------------------------+-------------------------------+
| Numis Securities Limited | Tel: + 44 20 7260 1000 |
+-------------------------------+-------------------------------+
| Heraclis Economides | |
+-------------------------------+-------------------------------+
| | |
+-------------------------------+-------------------------------+
| Redleaf Communications | Tel: + 44 20 7566 6727 |
+-------------------------------+-------------------------------+
| Henry Columbine/Emma Kane | eredene@redleafpr.com |
+-------------------------------+-------------------------------+
Notes to Editors
Further information on OSL is available at www.oceansparkle.com.
About Eredene Capital PLC
* Eredene Capital PLC is the leading UK-based AIM quoted investor in
infrastructure projects in India. It focuses primarily on ports, port services,
logistics and distribution warehouses.
* The Eredene Group has now announced investments in eleven projects in India -
nine in ports/port services, logistics and distribution warehouses, one in IT
offices and one in a large scale, affordable housing development. Four of its
projects are revenue generating, of which two are profitable and dividend paying
and a fifth is taking sales deposits.
* Eredene recently announced that it had won a bid in a consortium to build and
operate the Container Terminal at Ennore Port in the southern Indian State of
Tamil Nadu. The estimated project cost of the Ennore Container Terminal is
GBP207m. Eredene bid for the project in a consortium headed by a substantial
Spanish port operator, Barcelona-based Grup Marítim TCB SL (www.gruptcb.com),
together with international construction group Obrascón Huarte Lain SA
(www.ohl.es), and a large Indian construction, power and engineering
conglomerate, Lanco Infratech Ltd (www.lancogroup.com). Eredene has a 22% stake
in the consortium. The terminal will have a quay length of 1000 meters, a
draught of 15 meters and an estimated throughput of 1.5 million TEUs (twenty
foot equivalent units) per annum. Eredene's equity commitment to this project
is up to approximately GBP23m over a 48 month period.
* Eredene has a strong shareholder register which includes Caledonia
Investments, Ruffer LLP and Henderson Global Investors.
* Eredene has an investment advisory team in Mumbai with specialist experience
in ports and related infrastructure. The team is led by Mr Nikhil Naik,
previously Regional Director of P&O in India and CEO of Mundra International
Container Terminal.
* Eredene is also supported by special advisors, including Mr DT Joseph,
formerly the top Indian Civil Servant in the Ministry of Shipping and Transport,
and Mr Sarvjit Singh, former Chairman of largest Pan-Indian warehousing company.
* Eredene trades on the Alternative Investment Market (AIM) of the London Stock
Exchange.
www.eredene.com
This information is provided by RNS
The company news service from the London Stock Exchange
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