SovGEM::::China Play

New investment - link in header.


...made a £500,000 investment in Tynda Forest Holdings Limited ('Tynda'). Tynda is a private and established forestry products company based in the Amur region of Russia's Far East. This investment represents 1.5% of the Tynda enlarged share capital.

The investment will help Tynda increase its capacity to meet growing Asian
demand, reduce its harvesting costs and expand its base of wood products. Tynda
is a forestry products company with a 30 year history in the Russian Far East.
Its primary business is harvesting trees on long term timber cutting rights and
the export of logs to the fast growing Asian market. Tynda operates wood
processing and MDF manufacturing facilities for both the Chinese and domestic
market. SovGEM believes investing in Tynda is an excellent opportunity for
SovGEM to take advantage of the developing domestic demand growth in China by
investing in an industry leader.

Tynda is expected to seek a public listing in the next year. Tynda's non
Executive Chairman is Peter Hambro, Chairman of Peter Hambro Mining PLC.

So this early-stage investment might get a considerable uplift in value at the IPO stage.