AIG Capital Partners acquires 46 per cent of Orze_ Bia_y SA

Orze_ Bia_y recycles and produces lead and lead alloys used in the production of new car batteries. Company shares are publicly traded on the Warsaw Stock Exchange.

The equity commitment will be funded by AIG New Europe Fund II, LP (AIG NEF II), a private equity fund focused on direct investments in Central and Eastern Europe. AIG NEF II is sponsored by AIG Investments, with EUR523 million in committed capital.

In compliance with the Polish public market regulations, AIG NEF II, through a wholly-owned subsidiary Desislava Investments, has announced a mandatory tender offer to acquire up to 66% of Orze_ Bia_y.

Pierre Mellinger, who has overall responsibilities for AIG Capital Partners’ private equity activity in Central and Eastern Europe says, ‘We are proud to invest in Orze_ Bia_y, which provides necessary services for the environment by recycling the lead components of car batteries. Not only were we attracted by the sound business plan, but also by Orzel Bia_y management’s rigorous approach to environmental issues and business practices. We look forward to working closely with the managers of the Company to continue expanding the operations, the range of services and ultimately increase its geographical focus.’

Robert Thompson, Senior Managing Director and Head of Alternative Investments, AIG Investments, notes, ‘Orze_ Bia_y is our third investment in Central and Eastern Europe in 2007, which illustrates the huge potential currently available in this region. Through this transaction, our local team demonstrates its capability to spot the best companies with tremendous growth opportunities.’

AIG Investments was advised by Baker McKenzie on the transaction.