Clearwater Capital Partners Singapore Fund III (P) of Singapore, a majority-owned unit of Clearwater Capital Partners has bought 9.99% stake in Oricon Enterprises Limited for Rs.33.8o crore.

It bought 961,641 shares at Rs.351.50 from Beaumaris Investments through open market on BSE.

Transaction Reference: Myiris

Oricon was a part of Oriental Containers Limited (OCL). OCL was into packaging, petrochemical and real estate business. In September 2006, to enable Navigate Mauritius Limited (Navigate), the Kuala-Lumpur-based private equity investor, to invest solely in its packaging operations, OCL hived off its packaging division and retained the company’s name for this division. The real estate and petrochemicals operations were restructured to form Oricon.

Oricon manufactures mixed pentane, a petrochemical with industrial applications, and is also into trading in metals and chemicals. Its plant at Khopoli (Maharashtra) has a capacity of 10,000 tonnes per annum. Oricon has a wholly owned subsidiary, USLSAL, which runs two showrooms for Toyota vehicles: one each in Worli and Nariman Point, Mumbai. Oricon is expected to enter the real estate activities segment by developing its own property at Worli. Oricon owns properties on a two-acre plot at Worli from which it derives rental income.

Earlier in Sep 2009, Clearwater Capital has invested Rs 35 crore in Oricon through fully convertible debentures (FCD). Clearwater will subscribe to 2.18 million FCDs at a price of Rs 162.20 per debenture which will be converted into equity within 18 months from the date of allotment. The issue, which is subject to approvals, is through Clearwater Capital Partners Singapore Fund III Pvt. Ltd.

During 2009-10, Oricon’s board of directors approved the merger of Naman Tradevest Private Limited (Naman Tradevest) and Zeuxite with Oricon. Naman Tradevest holds 62% in NCPPL. With the merger of Naman Tradevest with Oricon, NCPPL will become a 100% subsidiary of Oricon.

NCPPL currently derives income from warehousing activities but is expected to engage in real estate development over the medium term. Zeuxite holds 50.19% of USL.

USL offers integrated logistics services for sea-borne cargo including lighterage, stevedoring and logistics. The shareholders of Naman Tradevest will be issued three equity shares and one compulsorily convertible preference share of Oricon for each equity share of Naman Tradevest. The shareholders of Zeuxite will be issued one equity share and three compulsorily convertible preference shares of Oricon for each equity share of Zeuxite.

For 2009-10, Oricon reported a PAT of Rs.17.36 Cr on net sales of Rs.379 Cr, against a PAT of Rs.7.84 Cr on net sales of Rs.231 Cr for 2008-09.

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