Origo Sino-India, an Aim-listed investment and strategic advisory company focused on the private equity markets of China and India, has bought a 3 percent stake in Fomento International, one of India’s leading iron ore mining entrepreneurs.
Origo is investing $10 million in Fomento, which is planning to grow quickly in the international iron ore supply market with Origo as a strategic and financial partner, before listing on the London Stock Exchange.
Fomento is expanding in African and Asian markets, planning a joint venture with Origo to develop reserves in Mauritania in west Africa.
Its growth strategy, backed by demand for iron ore and rising prices, is based on a more than 50 years of operating history in India where it has enjoyed rising profits and holds approximately 250 million tones of reserves.
The investment is a landmark deal for Origo, marking the final instalment of its pipeline of deals promised at its Aim IPO last December, according to Chris Rynning, chief Executive of Origo.
Rynning said: “We are pretty much fully invested and in the near future we will be looking to raise more money. We are in early talks with advisers for a secondary offering.”
In the interim, the company can reinvest cash generated by realisations. It may also raise a more conventional private equity fund.