Origo Partners PLC Partial Niutech Divestment (9293K)

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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                              [e-mail] 
 Niklas Ponnert 
Nominated Adviser 
 Smith & Williamson Corporate Finance Limited 
 Azhic Basirov 
 Ben Jeynes                                      [phone] 
Public Relations 
 Aura Financial 
 Andy Mills                                      [phone] 
 

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

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July 13, 2017 02:00 ET (06:00 GMT)