After a lengthy absence, the Blackstone Group is considering a return to Asia. However, this time, Hong Kong shall not play host to the US private equity firm. Instead it has chosen India as its new Asian base. The Blackstone Group first opened its Asian operations in Hong Kong in 1993/4.



The Goldman Sachs Group and the funds managed by the private equity unit of Morgan Stanley have entered into an agreement to sell a principal portion of their holdings in Ping An Insurance Co. ('Ping An'). The buyer is HSBC Holdings which has earmarked HK$8.1 billion (US$1.0 billion) to take up a 9.91% stake in Ping An. The sale price was set at HK$13.20 per share, representing a 9% premium to the closing share price of Ping An on 6th May, the day before the announcement was made. In 1994, both Goldman Sachs and Morgan Stanley each had paid US$35 million for their respective 6.87% and 5.87% stakes in China's second largest insurance life company.



Navis Investment Partners (Asia) has taken up a controlling position in Hill & Associates, a Hong Kong-based risk management consulting firm. No financial details of the transaction were provided. This is the first known Greater China buyout transaction for the Malaysia-based boutique buyout firm which currently has more than US$450 million under management.



Since establishing its proprietary private equity fund, Mitsubishi Securities made its first move in allocating 300 million yen (US$2.8 million) to Shi Zu Shing, a Taiwan based manufacturer of hinges for personal computers and mobile phones. The investment further underscores Japanese interest in the island, which has registered significant decline of inflow of foreign private equity capital in recent years.



International Finance Corporation ('IFC') has committed to invest 660 million rupees (US$15.2 million) for a 7.8% stake in Dabur Pharma, an India-based pharmaceutical company. In the transaction, IFC will subscribe 12.2 million shares of the listed company, at 54 rupees each, representing a 6% premium to their closing price on 12th May on the National Stock Exchange of India.



Bear Stearns Asset Management, an affiliate of Bear Stearns, is known to have committed to invest US$6 million in Adlabs Films, a listed Indian film distributor and multiplex operator. The transaction price will be 150 rupees (US$3.45) each, being a 5% discount to the Adlabs Film’s closing price of 157.75 rupees on 12th May. In addition to Bear Stearns Asset Management, Adlabs Films will also receive US$6 million from the Singapore-based investment fund, Arisaig Partners (Asia). In total Adlabs Films will secure an aggregate US$12 million from these two foreign investors.



After a seven-year investment holding period, Baring Private Equity Partners (India) ('Baring India') is seeking to dispose its interests in MphasiS BFL, one of India's best known business outsourcing operators. As at March 2004, Baring India is understood to be holding a 35.51% equity position in MphasiS BFL, being its largest shareholder. Based on this, and the prevailing market capitalisation of MphasiS, the valuation of Baring India's holdings in the company is expected to be in the vicinity of 7.4 billion rupees or US$165 million.



Hindustan Times Media ('HTM'), one of India's oldest names in the country's media industry, is planning for an initial public offering. Backed by Henderson Private Capital, the Indian newspaper publisher has registered a red herring prospectus and indicated its intention to offer seven million new shares. Henderson Private Capital, which currently holds a 15.8% equity stake in the company, is intending to dispose of 2.4 million shares or an approximate one-third of shares currently held by the private equity firm.



Two of ICICI Venture Funds Management ('ICICI')'s portfolio companies are expected to make their respective debuts soon. Shopper's Stop, in which ICICI and AIG Indian Sectoral Equity Fund hold a combined 10% pre-IPO equity stake has fixed its initial public offering price at 238 rupees (US$5.50) each.

Separately, India Infoline, a retail investment advisor invested by both ICICI and Intel Capital is planning to offer nearly 12 million shares to the public, at an offer price of 76 rupees (US$1.75).




The Carlyle Group ('Carlyle') has agreed to sell its entire holdings in Japan-based medical equipment manufacturer, Colin Medical Technology to Omron Healthcare. No financial details of the transaction were disclosed. Carlyle acquired Colin Medical Technology in October 2003.



Advantage Partners has reduced its holdings in Actus Co. by 10%. A furniture retailer, Actus came under the control of the buyout house in 2001. Since then the company has expanded operations and is planning to make a public share offering in 2006. The present transaction is part of Advantage Partner's plan to include strategic shareholders to enhance Actus' development subsequent to its intended listing.



Softbank Investment Corp. has disposed nearly all of its holdings in Morningstar, an investment research company. The sale was made available to the public through an auction process which raised US$129.2 million for the seller. In 1999, Softbank Investment Corp. invested US$91 million in Morningstar.



In a development that signal the growing economic muscle of South Korea's financial institutions, Hana Bank has decided to proceed with the proposed investment in Daehan Investment Securities ('DIS'), without Singapore government's Temasek Holdings. According to a resolution made by Hana Bank's board of directors late last month, Daehan Investment Securities will become a wholly-owned subsidiary of Hana Bank, which will pay 475 billion won (US$467 million) to take over the securities firm.



Mr Rajiv Ghatalia, one of the best known names in Asia's investment banking industry, is to join Warburg Pincus' Hong Kong office as Managing Director. Most recently, Mr Ghatalia held the position as co-head of the investment banking division at Goldman Sachs’ Asia Pacific operation.