StanChart PE in $50m Asia mining deal

The Bank's PE arm has invested in Singapore-based minerals group OM Holdings.

Standard Chartered Principal Finance, the private equity arm of the Standard Chartered Bank, has invested $50 million in OM Holdings, a manganese mining company with operations in Asia and South Africa, according to a statement.

OMH is a publicly-listed on the Australian Stock Exchange and has a market capitalisation of A$240 million (€161 million; $221 million). The company’s main business segments include manganese mining in Australia and South Africa, smelting in Malaysia and China, and a trading base in Singapore.

The capital is structured as a secured loan with warrants equivalent to 3.5 percent of the equity of the company, the statement said. It will be used to support OMH’s work to establish global ferro-silicon smelting facilities. 

“SCPF’s investment provides long term capital to the company to refinance maturing debt and working capital for expanding operations. It removes short term liquidity pressures while allowing the management to focus on completing the ferro silicon project which is expected to begin operations in Q3 2014,” the statement said. 

In December, Standard Chartered appointed China-based Wei Zhu as new co-head of its private equity unit amid a wave of restructuring that included the departure of three managing directors, Private Equity International reported earlier.

Last November, it also teamed with Boyu Capital to invest in Chinese café operator Multi Concepts Link Restaurant Management, each taking an equal share of the business.

Standard Chartered Principal Finance is the private equity and mezzanine investment arm of Standard Chartered Bank and it provides expansion capital or acquisition finance. SCPF focuses on companies whose principal operations and management are located in Asia, Africa or the Middle East.