China Fund IDG capital partners becomes major shareholder

Leyshon Resources Limited (AIM/ASX: LRL) (Company) advises that it has completed its readmission to the Alternative Investment Market (AIM) of the London Stock Exchange.

As previously advised, as part of its readmission to AIM, the Company has placed 30,435,130 new ordinary fully paid ordinary shares at A$0.23 and raised approximately A$7 million before costs.

The shares have been placed with a number of high profile institutional investors who are supportive of the Company's business plans. The placees include IDG-Accel China Growth Fund II L.P. and its affiliated entity (collectively, "IDG-Accel Funds"), as managed by IDG Capital Partners, which now becomes a major shareholder holding approximately 8% of the Company.

IDG Capital Partners is a China-focused investment firm with over US$2.5 billion capital under management. It is one of the earliest foreign investment funds to enter the Chinese market since 1992 and has successfully invested in the industry of consumer, services, TMT, education, healthcare, new energy and advanced manufacturing sectors, such as Ctrip, Home Inns, Baidu, Soufun, Tencent, Kingdee, Sohu, Andon, Minco Silver, Minco Gold, VANCL and Hanting and has successfully exited from over 50 investments through M&A and/or IPOs in US, Hong Kong and China.

IDG Capital Partners invests in high quality companies with long-term growth potential. It shares its in-depth understanding of the China market with investee companies. In addition to providing funding, it works closely with management and industry leaders to achieve the growth objectives of its investee companies.

As previously advised the Company is in active discussions for the acquisition of a large thermal coal project in eastern Xinjiang and in addition it is reviewing a number of thermal coal projects in Inner Mongolia. It is continuing the process of applying for exploration licences in south west Mongolia that have the potential to host coking coal.

Following the issue the Company will have cash of approximately A$54 million (including term deposit interest) and 246,525,724 ordinary fully paid shares on issue.

Managing Director Paul Atherley commented: "We have been working closely with the IDG team in Beijing for some time now and welcome them on board as a major shareholder. IDG has an impressive track record of investment in China and we look forward to their support in implementing our business plans."

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