Origo looks to exit Gobi Coal and Energy
The owners of Mongolian mining firm Gobi Coal and Energy, which include Beijing-based Origo Partners, are looking to sell the asset for as much as $750 million. Bids are due mid-October, and Goldman Sachs has reportedly been hired to facilitate the sale.
Gobi Coal may be valued in the $500-750 million range, sources close to the company told Bloomberg. In addition to sourcing acquisition suitors, Gobi Coal is exploring listing options on the Toronto Stock Exchange.
Origo bought a 21% stake in Gobi Coal in November 2009 for a price that valued the company at $71 million. Origo now holds a 17.6% interest. In its half-yearly report, Origo noted that the value of its stake in Gobi Coal and Energy rose to $65.8 million by June 30, 2011, compared to $52.7 million December 31, 2010.
Gobi Coal launched in 2004 and exports coking coal to China.
The news comes the same week that Origo and Ecofin Limited announced the formation of China Cleantech Partners (CCP), a $200 million private equity fund that will invest in China's cleantech sector. It will target alternative energy, environmental remediation, water, and energy storage and distribution firms, investing directly or indirectly as an LP through the Origo Xinxiang Renewable Energy Fund. That vehicle is a RMB500 million renminbi-denominated limited partnership launched by Origo and the Xinxiang municipal government.
Origo and UK-based Ecofin have each committed $15 million to CCP and will take 50-50 ownership of the vehicle. The fund is expected to announce a first close of $75 million later this year.
Origo has already made a handful of deals in China's clean energy space, including recycling company Jinan Eco-Energy Technology and lithium-iron battery manufacturer Unipower Battery.
In addition to a focus on China and India, Origo opened an office in Ulan Bator to support its Mongolia-dedicated fund, Origo Altai Partners, in March of last year.
In its half-year report, Origo claimed total investments of more than $49 million in new and existing portfolio companies between January 1 and June 30, and a pre-tax profit of $19.4 million, compared to $2 million for the same period last year. It ramped up its investment activity following a $60 million fundraise in March.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.