Online M&A newsletter jun8

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OnLine M&A Cross Border News № 8 20 June 2010

DisclaimerThe information contained here and on the OnLine M&A website is meant for the use of sophisticated investors only. It does not constitute nor is it intended to constitute the provision of financial, legal or investment advice. The information is not an offering of securities nor investment interests. This information is based upon information provided by the businesses described and has not been independently verified. OnLine M&A makes no warranty about its accuracy. Investors must undertake their own due diligence and make their own assumptions on the prospects of any investment opportunity described on this site.

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Brazil Deal Book

Venture Capital $3mGold Exploration and DevelopmentThe Company is a private Brazilian/North American gold exploration and development company with a wholly-owned subsidiary that owns six major mining leases representing hundreds of mining licenses on several thousand hectares. The Company has a first right of refusal over a number of other min-eral projects, all of which are located in the gold-rich Tapajós gold province in Brazil (Pará and Matto Grosso). Some properties also have small-scale min-ing activity.

The Company is looking to raise CAN$2-3 million in private funds, which will be utilized primarily to invest in the more advanced project areas, to ex-tend geochemical and geophysical grids, and to cover the costs associated with the Company´s negotiations for acquisition of an advanced gold and polymetallic project with 43-101 reserves—an opportunity which would place the Company as an emerging gold producer.

Dear Colleagues,We have a number of interesting new opportunities in our deal books this month, many of them in the min-ing industry - silica for the silicon chip market, gold in the Congo and Brazil, and a producing diamond mine. We even have a globally-capable cruise ship in our France book. We have new deals in many of our Deal Books: Africa, Brazil, Europe, France, Romania, Russia.

The OnLine M&A Moderators are becoming established as voices for the mid-market of financial services in their respective countries. Startupi (startupi.com.br) recently asked Brazil Moderator Thierry Larose to post an article in which he asks and answers the question: “Why hasn’t the digital information revolution reached the world of Private Equity and M&A?” Startupi is a blog focused on the world of Brazilian Internet software startups.

We are now actively seeking Moderators to fill out the BRIC countries, which we have expanded to BRICS to include South Africa. Please feel free to contact me if you have a suggestion or interest in this opportunity.

Warmest regards,Philippe Der MegreditchianOnLine M&A

Company Sale $10mSilica Mine in BahiaThis Company holds mining rights to a silica deposit with a silica capacity of about 1.7 million tons in Brazil’s state of Bahia. Silica is an im-portant strategic mineral resource as it is the essential raw material for the production of chips, transistors and solar cells. Brazil is one of the world’s largest silica producers.

The use of silica in computer chips is expected to continue to grow dramatically, and silica is essential for solar cells, also a leading growth market. The Company is interested to sell the mining rights to this silica deposit.

Company Sale $5mA Producing Diamond MineThis diamond mine is located in the State of Mato Grosso, and produced from June of 2006 to July of 2008, when operations were suspended to convert the operation from a contract mining operation to a lower cost “owner-operated”mining fleet. However, with the financial crisis, this initiative was not completed and the operation has remained on a care and maintenance basis pending the installation of a new mining fleet, and the acquisition of ad-ditional operating capital.

During its two-year operation, the Company mined out of only one concession, producing more than 33,000 carats from 1 Mm3 of alluvial gravels for an average grade of 0.032 ct/bcm, generating more than USD13 million in gross sales revenue. The average carat price obtained for diamonds produced from the mine is amongst the highest in the world.


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Company Sale $130mLarge Gravel Quarry in Rio de JaneiroThe Company has a successful and established mining business in Rio de Janeiro that operates from a long-standing gravel quarry, which serves the greater Rio de Janeiro area. Over the course of the past 5 years, revenue has grown significantly, mainly due to increase in demand and higher prices for gravel. Production could be increased by adding personnel in different shifts as well as by mining sand. This would double revenues through the benefit of scale, with larger resulting profits.

The Company is strategically located in greater Rio de Janeiro, with major freeway (city belt) currently under construction near the Company’s main gate. In addition to the growing real estate market and existing infrastruc-ture projects being developed, the coming 2014 FIFA WorldCup and the 2016 Olympics will demand new construction and renovation. The Company is well positioned and prepared to step into this opportunity and significantly expand its operations based on an already developed structure and business plan that can achieve tremendous success.

Share Placement $10mPrivately-Held Investment CompanyThe Company was established in 2008 as a privately held investment company based in Curitiba. The Company cur-rently has three active investments:

• a teak plantation company established in 1999;• a factoring company established in 2002;• a plastic products company established in 1979.

The Company is seeking expansion equity funding for a to-tal amount of USD 10 Million for a 45% share in the Com-pany. New capital funds will be used to increase capital of the factoring business and to invest in one or more new op-portunities in the pipeline.

Venture Capital $1.1mProducer of All-Natural Neck Collar Protectors for Beauty SalonsBrazilians have a cultural strong focus on beauty, wellness and fitness, well above the average of most other develop-ing and developed countries. The Company’s product is an inexpensive neck collar to be used in hair and beauty salons to protect a client’s neck skin from fungi and bacte-ria that is found in traditional hairdressing and dye capes. The product is made from natural fiber and it is disposable, aseptic, humidity-proof and highly liquid absorbent.

The Company has successfully sold 25,000 units to pilot-test the market. They are now looking for an investment of USD 1.1M to start the production of 60,000 units per month, and finance a country-wide marketing campaign.

Company Sale $240mBiodiesel Farm in the State of Mato GrossoThe business is a diversified farming operation that engages in:

• Traditional farming: soybeans, sunflowers, corn, sorghum and pearl millet;

• Production of biodiesel B100 from vegetable oil;• Industrial processing of soybeans - production of top grade extruded

soybean meal and food grade extruded soybean flour;• Industrial processing of corn - production of gelatinized corn flour

with and without embryo seed;• Industrial processing of sunflower seeds - production of extruded sun-

flower meal.

The Company is on sale with all required licenses and permits, fully operating machinery park and infrastructure, and 30,000 hectares of land - of which 8,000 are dedicated to traditional farming.

Brazil Deal Book

Company Sale $500mLeading Sugar Mill in the Southeast of BrazilThe Company has more than thirty years experience in the exploitation and the production of sugarcane. They supply domestic and interna-tional markets with granulated sugar, refined sugar, and hydrated alcohol.

The Company is also active in the generation, co-generation and supply of electric power into the regional grid, through the processing of the sugarcane pulp and other alternative sources . The Company operates on 33.75k hectares of land, of which they own 1,750 hectares.


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France Deal Book

Company SaleLeading European SAP IntegratorSpecializing in PMO and integration on SAP and BusinessObjects, the Com-pany has more than 50 services and industrial clients, many listed in the CAC40. The Company is very active in the Food, Utilities and Industry sectors. It has expertise well above the average of its sector and a functional coverage enabling it to pilot project implementation for the segment €100 million to €3billion.

Founded by entrepreneurs from the world of global consultants, the Com-pany is recognized for the quality of its methods and tools. The Company’s founders wish to continue the development of its business within the net-work of Chartered SAP Partners in France. For this reason, the Company is seeking an investor to sustain its growth.

Company SaleA Global-Capable Cruise ShipThe Company is the owner of a Europe-based cruise ship with 100+ cabins that can accommodate 4000 people. The cruise ship, which was built in the 1970s and overhauled and refitted twice in recent years, is in excellent condition.

The ship is global-capable for cruises in the Caribbean, Med-iteranean, Arctic and Antarctic. The Company is interested to divest of this asset.

Romania Deal Book

Company Sale €50mConstruction Company Specialized in Large Infrastructure WorksThe Group is a leading Romanian contractor that specializes in road, high-way, bridge, airport, railway, and underground works, as well as civil, in-dustrial and metal construction. The Group is an integrated player with a presence across various segments of the construction value chain from pro-duction of raw materials (concrete, asphalt) with supply from its own quar-ries, to infrastructure works over the entire transport spectrum.

Romania has large needs to build its transportation network and has a huge pipeline of infrastructure works planned through 2025. The long-term out-look for Romanian infrastructure is robust, driven by major long-term gov-ernment and EU investment plans. International companies interested to participate in Romania’s extensive need for major infrastructure projects have the possibility to consolidate their position by the acquisition of local players.

Company Sale €7mA Rail Terminal for BitumenThis Romanian company is interested to sell a bitumen ter-minal with excellent access to railway infrastructure. Due to the narrow market in this field and the terminal’s excellent geographical position, the Company has become an impor-tant partner for major road construction companies and oil refining companies.

There is inadequate bitumin production for the actual re-quirements of Romania’s road infrastructure projects, and as a result the unmet demand is supplied by sea. The cost and flexibility provided by the terminal are a great com-petitive advantage. The Company has a 15% market share, which it has held during the last three years of activity.

Europe Deal Book

Venture Capital €5mNew Italian Independent Digital Television Channel

This Company is an independent multi-faceted entertainment company created to market global independent films for theatrical release and television broadcast including ancillary markets. The final goal of the Company is to create an Italian independent player in the digital televi-sion market, able to broadcast a free view channel. The Company is seeking €5 million for the start up. Raised funds will allow the Company to cover all the capex and the operational costs for a period of five years.


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Russia Deal Book

Venture Capital €1.1mLuxury Brand Jewelry RetailerThe Company plans to develop boutiques for a well-known European luxury jewelry brand. The brand is a global leader in its segment, with a strong po-tential in the Russian market as well as in the most advanced neighboring countries such as Ukraine. Despite the crisis in the the fashion retail busi-ness in Russia, there have been positive results for the first of the brand’s boutiques, which opened in September 2009. This confirms that the brand’s strategy and positioning are very well adapted to the market, even in tough economic environment.

With an investment of €1.1m split between 2010 and 2011, the Company can take over the brand’s existing Moscow boutique and operations and build a network of twenty boutiques, with plans to generate a yearly turnover of almost €10m (incl. VAT) by 2014 and up to €19m per year by the end of the distribution agreement.

Project FinanceOil and Gas Exploitation in Southwestern RussiaThe Company controls two parcels of land that have been subject to extensive oil exploration in recent years. Eight ex-ploration wells have been completed that have confirmed reserves of 10.1 million tons of oil (C1 + C2) and 650 million cubic meters of natural gas.

Oil pipelines (crude and refined) traverse the Company’s properties and the region is favorably situated in the Euro-pean sector of Russia for transport by highway or rail. Due to its ownership of the land parcels the Company is in a fa-vorable position to obtain the exploitation licenses for these reserves. It is seeking credit financing to complete the work necessary to exploit the oil and gas reserves.

Africa Deal Book

Share Placement €25mGold Mining Company in CongoThe Company is a junior mining company with significant experience in gold exploration, project management and governmental relations in the Congo. It has experience in the exploration, confirmation and exploitation of small deposits, and in the development of cash generative para-mining activities such as electricity generation.

The Company has acquired two mining concessions for a total of 40 square kilometers in the world’s fifth-largest gold mining reserves The Company’s goal is to achieve strategic energy independence through the rehabilitation of a pre-existing 5-megawatt hydro-electric dam on the Nzoro river. Excess electricity will be sold to other mining companies and to the people of the region. For a total of €25 million, consisting of €15 million for the mining project and €10 million for the dam project, the Company will be able to con-firm its deposits and begin production on the first concession.

Venture Capital $2mMobile Money Transfer Business in West AfricaThe Company’s mission is to revolutionize traditional mon-ey transfer and mobile banking by introducing mobile tech-nology. Mobile Money Transfer (MMT) provides the means to augment ways through which mobile phone users make financial transactions such as money transfer, bill payment and emergency money needs.

The Company’s market has overtaken South Africa to be-come the continent’s largest mobile market with over 70 million mobile phone subscribers, and yet market penetra-tion stands at only around 45% in mid-2009. The Company is seeking $2m of investment to fund the first two years of development of its business.

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