Origo Sino-India (OSI), a private equity and consulting company focused on China and India, has said that its board has approved a merger with Origo Resource Partners (ORP). Both the firms are listed on London's Alternative Investment Market. ORP focuses on natural resources investments in India and China, and is advised by OSI.
ORP and OSI's investments in India include Roshini International Bio Energy Corp, a Hyderabad-based firm. It has also made an investment in HaloSource, a water purification firm focused on India and China.
The directors of both the companies have reached an agreement for the merger. Under the terms of the deal, ORP shareholders will get 2.8 shares in OSI for every share held. They also have the option to go take 10% of their shares in cash, at 45 pence per share.
ORP raised £48.6 million in gross proceeds through an IPO in December 2007.
The merged entity is expected to have a market capitalisation of approximately £37 million, as per OSI's closing price at 15 October 2009. The combined investment portfolio will consist of 15 companies with an in aggregate value of £53.8 million.
The entity will focus mainly on China, which now forms a major part of its portfolio.
"The merger of OSI and ORP will create a larger company with a broadened shareholder base. With both companies offering shareholders similar listed exposure, a single-entity with a unified approach will be better positioned to raise funds, make investments and develop as a business," said ORP Chairman Charles Wilkinson in a release.