ARCH Arc Capital

RNS Number:3788T
ARC Capital Holdings Limited
21 March 2007

21 March 2007

                          ARC CAPITAL HOLDINGS LIMITED


ARC Announces Equity Fundraising to Target Opportunities in China Consumer
Sector


LONDON, 21 March--ARC Capital Holdings Limited (the "Company" or "ARC") (AIM:
ARCH), a closed-end investment company admitted to trading on the AIM market of
the London Stock Exchange, is pleased to announce it is undertaking a second
round of equity fundraising to target further opportunities in the fast growing
China retail and consumer sector.


The Company intends to raise approximately US$200,000,000 by way of a limited
private offer for subscription of 147,000,000 new ordinary shares of US$0.01
each (the "Ordinary Shares") at a subscription price of US$1.36 per share (the
"Fundraising") with a minimum subscription of US$250,000 per subscriber.


Since its admission to trading on AIM on 26 June 2006, ARC has focused on
investments in the rapidly developing retail and consumer sector in China. The
Company has now successfully invested and committed  all of the US$81m of new
capital raised at admission.


ARC's key investments to date include shareholdings in:


  * Goodbaby Group, a market leader in the Chinese baby stroller market and
    other Chinese baby and child products sector;
  * Shanghai Jiadeli Supermarket Co. Ltd, one of the leading supermarket
    chains in Shanghai; and
  * Ningxia Xiajin Dairy Group Company Limited, the largest diary company in
    the Ningxia Autonomous Region and the second largest dairy producer in north
    west China.



ARC and its investment manager, ARC Capital Partners Limited ("ARC Capital")
intend to use the proceeds of the Fundraising to invest in further opportunities
in the consumer and retail sector.  ARC Capital has identified and negotiated a
pipeline of investment opportunities where non-binding term sheets are in place
for an aggregate value of approximately US$460 million. ARC will invest in these
opportunities either on its own or with other co-investors. It is proposed that
a substantial proportion of the proceeds of the Fundraising will be applied to
this identified pipeline.



Rachel Chiang,  Managing Director at ARC Capital said: "The retail and consumer
sector in China is a very exciting area to be investing in right now. Not only
is the sector growing at a phenomenal rate but the development of brand
awareness and loyalty means that a number of companies will begin to emerge that
will be leading players first in China, and then internationally. This
Fundraising will allow the Company and ARC Capital to continue to target
investments in some of the country's most promising companies."



About the Fundraising



There will be a pre-emptive preference for the Company's existing shareholders
who are invited to participate in the Fundraising. In the event subscriptions
need to be scaled-back, existing shareholders who are invited to participate in
the Fundraising and return their subscriptions by 20 April 2007 will be
guaranteed to receive a preferential allocation in relation to the new Ordinary
Shares available for subscription pursuant to the Fundraising of at least one
(1) new Ordinary Share for each one (1) Ordinary Share held by them on 22 March
2007.



The anticipated closing date for the Fundraising is 30 April 2007 and an
application will be made to admit the new Ordinary Shares for trading on AIM,
currently expected to occur on or about 17 May 2007.  A further announcement
will be made upon completion of the Fundraising.



In conjunction with the Fundraising, the Company commissioned an independent,
third party valuation of its interest in the Goodbaby Group. Based on this
valuation, as at 21 March 2007, the Company's unaudited net asset value per
share was US$1.32.



The timetable for the Fundraising will be as follows:


Cut off date to be eligible for the pre-emptive preference      22 March 2007
Subscription agreements distributed to selected investors       26 March 2007
Last date for receipt of completed subscription agreements to   20 April 2007
be eligible for the pre-emptive preference
Closing Date                                                    30 April 2007





Should you require more information about the Fundraising, please contact:




MANAGER:                                              LEGAL COUNSEL:

Clement Kwong, Managing Director                      Jon Lewis, General Counsel
ARC Capital Partners Limited                          Pacific Alliance Group
Suite 1905 City Center of Shanghai                    16/F St. John's Building
Tower A, 100 Zunyi Road                               33 Garden Road
Shanghai, PRC 200051                                  Central, Hong Kong
Tel: +8621 62371202                                   Tel: +852 29180088
Fax: +852 35447699                                    Fax: +852 29180881
clement@arccapitalchina.com                           jlewis@pacific-alliance.com


BROKER:                                               NOMINATED ADVISER:
Hiroshi Funaki                                        Philip Secrett
LCF Edmond de Rothschild Securities                   Grant Thornton Corporate Finance
Tel: +44 20 7845 5960                                 Tel: +44 870 991 2578
Fax: +44 20 7845 5961                                 Philip.J.Secrett@gtuk.com
funds@lcfr.co.uk



INVESTOR RELATIONS:
Simon Moyse
Brian Cattell
Finsbury Group
Tel: +44 20 72513801
simon.moyse@finsbury.com
brian.cattell@finsbury.com










                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

IOEKGGZFVMZGNZG

Grafico Azioni Arc Capital (LSE:ARCH)
Storico
Da Giu 2024 a Lug 2024

Grafico Azioni Arc Capital (LSE:ARCH)
Storico
Da Lug 2023 a Lug 2024