PCGB Power Capital

TIDMPCGB

RNS Number : 4673D

Power Capital Global Ltd

16 May 2012

For immediate release: 16 May 2012

Power Capital Global Limited

(the "Company")

Company invests into leading Mongolian conglomerate

Update re proposed TSI equity investment

The Company is pleased to announce that it has subscribed, effective 10(th) May 2012, through its wholly owned subsidiary PCG Mongolia Limited, for a 1.2% equity stake in Asia Pacific Investment Partners Limited ("APIP").Total consideration for the Investment is US$2 million (approximately GBP1.26m). This investment was made as part of a US$15 million private placing by APIP.

Incorporated in Hong Kong in 2001, APIP (www.apipcorp.com) has 11 operating subsidiaries in Mongolia, with a focus on real estate, cement, financial services and mining. APIP is strategically positioned to capitalize on Mongolia's projected growth in GDP. In the year ended 31 December 2010, APIP had audited consolidated revenues of US$15.3m and profits after tax of US$7.1m. At that date, consolidated net assets amounted to US$13.2m. APIP is looking to list within the next fifteen months in either Hong Kong or London.

The Company believes that this direct investment in Mongolia's leading foreign invested conglomerate will provide the Company with fast track opportunities in the burgeoning natural resources sector in Mongolia. APIP owns the third largest cement producer in Mongolia, with total production of 34,000 tons in 2011 and a total plant capacity of 80,000 tons. The Company has already signed a framework agreement for the supply of cement clinker to APIP, sourced from the Inner Mongolia region of China. A number of other trading and development opportunities with APIP are under investigation.

Simon Dewhurst, the Company's CEO, has been appointed to the board of APIP with immediate effect.

Funding for the Investment has been provided by way of a twelve-month LIBOR +3% revolving loan facility from Power Capital Forex Management Limited, a company controlled by Kung Min Lin. The facility is deemed to be a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies. The directors, other than Kung Min Lin (who has taken no part in the Board's consideration of the loan facility), consider, having consulted with Northland Capital Partners Limited, the Company's Nominated Adviser, that the terms of the loan facility with Power Capital Forex Limited arefair and reasonable so far as the shareholders of the Company are concerned.

Update on proposed equity investment in TSI Holdings Limited

The Company announced on 12 March 2012 that it had signed a term sheet to subscribe for a 30% equity stake in TSI Holdings Limited ("TSI") (the "TSI Investment"). Total consideration for the TSI Investment is US$2 million (approximately GBP1.26m) and the subscription is subject to, inter alia, due diligence. Completion of due diligence matters has been extended from the original timetable of 4 to 6 weeks. A further announcement will be made in due course.

 
 
  Further information 
 
 Power Capital Global Limited 
 Simon Dewhurst                     Tel: +852 9181 9938 
 
 Northland Capital Partners 
  Limited 
 Luke Cairns, Edward Hutton         Tel: +44 (0)20 7796 8800 
 
 GTH Communications Limited 
 Toby Hall, Suzanne Johnson-Walsh   Tel: +44 (0)20 3103 3900 
 

Notes to editors

Power Capital Global Limited is an AIM listed Asia based natural resources trading and logistics business(AIM:PCGB) headquartered in Hong Kong.

PCGB operates under the trading name PCG Resources.

PCGB is actively researching domestic China thermal coal trading business opportunities.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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