GLG Partners will make an investment of £17.1 million ($33.8 million; €21.9 million) in Origo Sino-India, an investment and consulting company focussed on private equity in China and India.
The investment will be made through the placement of new ordinary shares. GLG Partners will pick up about 28.29 million shares at £0.604 a share to own an interest of about 29.6 percent in the company following the investment, Origo said in a statement.
According to a memorandum of understanding signed by GLG and Origo Sino-India, the two firms will “develop a broader strategic relationship focused on asset management and advisory opportunities in China, India and other emerging markets”, said GLG in its statement. Origo will also provide GLG with research services for three years for a fee of £3 million.
Greg Coffey, a senior managing director at GLG, said in a statement “Origo owns an interesting portfolio of proprietary investments primarily in China and India and has an exciting pipeline of investment opportunities in these markets”.
Before this investment, GLG’s funds have invested in Origo Resource Partners, a listed investment fund that invests in private equity natural resource opportunities in China and India, and is advised by Origo Sino-India.
Origo Sino-India will be using the additional funds for portfolio investments that will include co-investments with Origo Resource Partners.
Origo Sino-India was listed on AIM in December 2006.