Aurora Russia has announced that it will invest a further USD1m in OSG Records Management Group to finance further capital expenditure, primarily for warehouse racking to meet growing s
Aurora Russia has announced that it will invest a further USD1m in OSG Records Management Group to finance further capital expenditure, primarily for warehouse racking to meet growing storage demand.
The firms have agreed a USD1m convertible loan facility, which will provide Aurora Russia with an option to convert the outstanding principal and accrued interest at a pre-agreed valuation.
Aurora Russia has invested GBP7.7m in OSG RM Group – GBP6.0m in equity investment and GBP1.7m in the form of a convertible loan facility. Its equity stake in the company currently amounts to 39.4 per cent; should it chose to convert the outstanding GBP1.7m convertible loan facility and the further USD1m convertible loan announced today, it would increase its equity stake to approximately 50 per cent.
Following the investment, Aurora Russia will hold approximately GBP4.65m of cash and cash equivalents, excluding GBP8.0m of cash in Kreditmart.
James Cook, director of Aurora Russia, says: ‘OSG RM Management is the market leader in records management in Russia, Ukraine, and Kazakhstan and continues to grow strongly as the records management market in Russia meets increasing demand. We believe that OSG RM Management will continue to remain largely protected from the economic downturn and the additional capital provided will enable OSG RM Group to strengthen its presence in its core markets and secure further market share.’
OSG is the largest records management company in Russia, Ukraine and Kazakhstan. It is the second largest in Poland and is considered a regional market leader.
As of 30 September 2008, OSG posted year to date revenues of USD12.3m, up 61 per cent for the same period last year.
Aurora Russia floated on the Alternative Investment Market of the London Stock Exchange on 24 March 2006. It was established to acquire interests in small and mid-sized private companies in Russia which are focused on the financial, business and consumer services sectors where there is a potential for growth together with viable exit opportunities within two to four years.
