Orient Home Follow On Investment (1207Y)
16 Dicembre 2010 - 3:55PM
UK Regulatory
TIDMARCH
RNS Number : 1207Y
ARC Capital Holdings Limited
16 December 2010
ARC Capital Holdings Limited
16 December 2010
ARC Capital Holdings Limited
Orient Home Follow-On Investment
ARC Capital Holdings Limited ("ARCH") (AIM: ARCH) is pleased to
announce that on 10 December 2010, it made a follow-on investment
of RMB480 million (equivalent to US$72.1 million) in cash in its
portfolio company Orient Home ("Orient Home" or the "Company"). The
investment completes the 65% acquisition of a portfolio of 17
Orient Home real estate assets on terms that were agreed at the
time of the initial investment in August 2008. The anticipated
benefits to the Company from the acquisition include 1) securing
favourable rental rates and locations for Orient Home stores, 2)
providing future upside as the property market in China has seen
significant price appreciation relative to the pre-agreed valuation
of the real estate, and 3) the opportunity to further develop the
highly underutilitised sites occupied by the Company. ARCH expects
to sell and lease-back 2 to 5 of the properties in the following
months which should generate enough proceeds to finance most, if
not all, of the acquisition.
Headquartered in Beijing, Orient Home is the largest domestic
branded home improvement retailer in China operating 24 stores in
the first and second tier cities, including Beijing, Shenyang and
other major cities. ARCH invested a total of US$83.9 million to
acquire 65% of the Company's home improvement retailing business
with the initial investment in August 2008.
Over the preceding 11 months, ARCH has generated approximately
US$267 million of net proceeds from realisations. Approximately
US$107 million of existing liabilities, including the US$75 million
external loan, have since been paid. A further RMB480 million
(equivalent to US$72.1 million) has been used to fund the
aforementioned follow-on investment, leaving US$63 million to fund
the announced tender offer, US$10 million to settle the outstanding
management performance fees and US$15 million reserved for working
capital. Further cash inflows over the following 12 months from the
realisations of Goodbaby, which is publicly listed and currently
under lock-up, and Hainan Airports, Jiadeli and UCCAL, for which
exits have been contracted, are expected to amount to US$150 to 250
million on a gross basis. Approximately two thirds of that amount
represents profit for distribution to shareholders and the
remaining returned principal is to be used for new investments.
Further realisations from the portfolio will follow the investment
policy announced on 1 December 2010 to allow for investments in
attractive new opportunities while providing a regular cash
distribution to shareholders. An active deal pipeline has been
formed and the manager is currently reviewing attractive new
opportunities in the Chinese logistics, food products,
pharmaceutical distribution, and personal care sectors.
For more information, please contact:
MANAGER: LEGAL COUNSEL:
Allan Liu, Managing Partner Jon Lewis, General Counsel
c/o ARC Capital Partners c/o Pacific Alliance Group
Limited 16/F St. John's Building
13/F St. John's Building 33 Garden Road,
33 Garden Road, Central, Hong Kong
Central, Hong Kong T: (852) 2918 0088
T: (852) 3115 0243 F: (852) 2918 0881
F: (852) 3115 0244 jlewis@pacific-alliance.com
aliu@pacific-alliance.com
---------------------------- -----------------------------
BROKER: NOMINATED ADVISER:
Hiroshi Funaki Philip Secrett
LCF Edmond de Rothschild Grant Thornton Corporate
Securities Finance
T: (44) 20 7845 5960 T: (44) 20 7383 5100
F: (44) 20 7845 5961 Philip.J.Secrett@uk.gt.com
funds@lcfr.co.uk
---------------------------- -----------------------------
INVESTOR RELATIONS: MEDIA RELATIONS:
Chong Min Yi Stephanie Barry
Pacific Alliance Group Pacific Alliance Group
T: (852) 3719 3319 T: (852) 3719 3375
cyi@pacific-alliance.com sbarry@pacific-alliance.com
Andrew Walton / Laura Pope
Financial Dynamics, London
T: (44) 20 7269 7100
Christine Wood / Queenie
Tsao
Financial Dynamics, Asia
T: (852) 3716 9800
---------------------------- -----------------------------
About ARC Capital Holdings Limited
ARC Capital Holdings Limited ("ARCH") (AIM: ARCH) is a
closed-end investment company with net assets of US$626.8 million
as at 30 November 2010. ARCH was admitted to trading on the AIM
Market of the London Stock Exchange in June 2006. ARCH makes and
holds investments in the retail, consumer goods and consumer
services sectors, principally in China but also in neighboring
Asian countries. Target investments include regional hypermarkets
and supermarkets, dominant consumer brands, specialty retail
chains, retail property assets and retail and consumer service
providers.
For more information about ARCH, please visit:
www.arch-fund.com
ARC Capital Holdings Limited is a member of Pacific Alliance
Group ("PAG"), one of the leading Asian alternative investment
managers. Founded in 2002, PAG manages funds covering private
equity, real estate, hedge fund and distressed investments and has
offices across Asia including Hong Kong, Shanghai, Beijing and
Tokyo.
For more information about PAG, please visit:
www.pacific-alliance.com
This information is provided by RNS
The company news service from the London Stock Exchange
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