Business
First Investment
First Investment.
About this update from Aurrigo International Plc
[{"type":"text","content":"\n Aurora Russia Limited\n25 July 2006\n\n\n25 July 2006\n\n\nAurora Russia Limited acquires stake in OSG Records Management group of\ncompanies\n\nDeal marks first investment in Russia following IPO\n\nAurora Russia Limited (the 'Company' or 'Aurora Russia'), the AIM-quoted\ninvestment vehicle established to make equity or equity-related investments in\nsmall and mid-sized private companies in Russia, announces that it has invested\n$9.4m (£5.1m) for a 40.31% stake in Whitebrooks Investments Limited\n('Whitebrooks'), the holding company of the OSG Records Management group of\ncompanies ('OSG RM Group'). OSG RM Group is the market leader in records\nmanagement in Russia, Ukraine, and Kazakhstan. Aurora Russia's stake is subject\nto an adjustment mechanism based on the OSG RM Group's 2006 revenues.\n\nThe Company and OSG RM Group have agreed that an 8% employee stock option\nprogramme will be implemented. Therefore Aurora Russia's interest in Whitebrooks\non a fully diluted basis will be 37.1%. In addition, Aurora Russia will provide\na short-term facility of $5.0m to assist in funding the general corporate and\nworking capital needs of the OSG RM Group. The facility will carry an interest\nrate of 12% p.a. and provide Aurora Russia with an option to convert any\noutstanding amounts into equity on the basis of a pre-determined formula, should\nthe OSG RM Group fail to repay them within 12 months of drawdown.\n\nThis is the first investment by Aurora Russia since its admission to the AIM\nmarket in March 2006. The Company is actively pursuing further investment\nopportunities in the business and financial services segments in Russia.\n\nAbout OSG RM Group\n\nOSG RM Group is the regional leader in records management and provides\ncost-effective total records management, document storage, data security and\nconfidential data destruction solutions. It is the largest operator in Russia,\nUkraine and Kazakhstan, with a presence in Poland, Bulgaria, China and Turkey.\nThe directors of Aurora Russia believe that OSG RM Group, which entered the\nRussian market in 1998, currently controls an estimated 70%+ of the outsourced\nrecords management market. OSG RM Group has built up nationwide coverage in\nRussia with a customer base diversified across industries and dominated by\nglobal blue-chip companies. OSG RM Group operates 17 data facili...