Further Investment in OSG


 

TIDMAURR 
 
RNS Number : 1461P 
Aurora Russia Limited 
19 March 2009 
 

 
 
 
 
19 March 2009 
 
 
Aurora Russia Ltd to invest a further $1m in OSG Records Management Group to 
finance growth 
 
 
Aurora Russia Limited (the "Company" or "Aurora Russia"), the AIM-quoted 
investment vehicle established to make equity or equity-related investments in 
small and mid-sized private companies in Russia, announces that it will invest a 
further $1m in OSG Records Management Group ("OSG RM Group"), to finance 
further capital expenditure, primarily for warehouse racking to meet growing 
storage demand. 
 
 
The Company and OSG RM Group have agreed a $1m convertible loan facility 
("Facility"). The Facility will provide the Company 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).  Aurora Russia's equity 
stake in the company currently amounts to 39.4 %; should it chose to convert the 
outstanding GBP1.7m convertible loan facility and the further $1m convertible 
loan announced today, it would increase its equity stake to approximately 50%. 
 
 
Following this investment, Aurora Russia will hold approximately GBP4.65m of 
cash and cash equivalents, excluding GBP8.0m of cash in Kreditmart. 
 
 
Commenting on the investment, James Cook, Director of Aurora Russia Limited, 
said: 
 
 
"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." 
 
 
Enquiries: 
 
 
Aurora Russia Limited 
James Cook+7 495 644-1662 
John McRoberts +44 (0)207 839 7112 
 
 
Investec Investment Banking 
Patrick Robb+44 (0) 20 7597 5169 
Martin Smith +44 (0) 20 7597 5177 
 
 
FD 
Ed Gascoigne-Pees     +44 (0)207 269 7132 
Alex Boycott             +44 (0)207 269 7272 
 
 
OSG Records Management Group 
 
 
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. 
OSG continues to provide cost-effective total records management, document 
storage, data security, document scanning and confidential data destruction 
solutions. 
 
 
As of 30 September 2008, OSG posted year to date revenues of $12.3 million (up 
61% for the same period last year). In 2007, OSG posted revenues of US$10.6 
million up from US$8 million in 2006 and just under US$5 million in 2005. 
 
 
OSG expects the records storage market to be somewhat protected from the 
economic downturn by archiving laws and a need for companies in the current 
environment to outsource their records management to achieve greater 
efficiencies through cost and staff reduction. OSG expects to continue to grow 
strongly in 2009 with a focus on margins and reducing its operating costs 
particularly those related to warehousing efficiencies. OSG estimates its 
current market share in Russia of outsourced document storage is over 60%. In 
Russia, the company's largest market, OSG estimates that the document 
outsourcing market still represents less than 5% of the total available market. 
 
 
Aurora Russia 
 
 
Aurora Russia floated on the Alternative Investment Market of the London Stock 
Exchange on 24 March 2006. Aurora Russia Limited is a listed investment company 
on the London Stock Exchange. 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. 
 
 
The Company provides its investors with exposure to high growth companies in 
Russia and its investee companies with the necessary capital to continue to 
expand and develop. Its aim is to substantially increase the value of our 
investments for ultimate trade sale or stock market listing. 
 
 
Aurora Russia Investment Advisors 
 
 
Aurora Russia Limited is managed by Aurora Investment Advisors Limited which was 
set up by James Cook and John McRoberts. They have 24 years combined investment 
and operational experience working with over 120 growth and mid-sized companies 
operating in Russia. The management team brings value to investee companies 
through its operational expertise and a proven track record for selling Russian 
companies to strategic buyers and bringing them to public markets. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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