August 6, 2007
| News Flash
Pacific Equity Partners' six-month long pursuit of Flight Centre Ltd., Australia's largest travel agency, was terminated following Ernest & Young's assessment that the deal was undervalued. The letter indicated the appropriate value for Flight Centre ought to be in the range of A$1.9 billion to A$2.0 billion (US$1.63 billion to US$1.71 billion). Flight Centre's management also concluded that the leveraged joint venture proposed by the buyout firm had become a “very complex and a costly transaction”.
Pacific Equity Partners had earlier offered to pay A$17.20 for each of Flight Centre's shares, valuing the travel agency at A$1.6 billion.
First Engineering Ltd., in which Affinity Equity Partners has assumed a controlling position, will be delisted from the Singapore Exchange & Securities, concluding the private equity firm's marathon process to assume control of the company. As of 31st July, the private equity firm, through Affinity Precision (s) Pte. Ltd., held 96.7% of the issued shares of the target company. (Singapore)
ChrysCapital Investment Advisors has raised US$1.25 billion for its fifth fund, ChrysCapital V, the largest India-focused fund on record. The closing of ChrysCapital V brings the fund management firm's funds pool under management to US$2.25 billion, the largest in India. (India)
Oaktree Capital Management, L.P. announced the final closing of its first Asian fund, OCM Asia Principal Opportunities Fund, L.P., with US$577 million in committed capital from investors. The fund will focus on investing in Greater China and Japan with 80% of its allocation, with the remaining for selected Southeast Asian markets. OCM Asia has already made four investments, including Taiwan's Fu Sheng Industrial Co. Ltd..
South Korea-based STIC Investments, Inc. announced the final closing of its Pan-Asia fund, STIC Pioneer Fund II, L.P. (STIC II), at 185 billion won (US$200 million) enlisting The Military Mutual Aid Association, Korean Teacher's Credit Union, Saudi Economic and Development Co, as well as Credit Agricole (Suisse) SA as limited partners. STIC II achieved its first closing in Novemger 2006 at 156.2 billion won. (Pan-Asia)
SBI Holdings has taken up a 50% equity position in Environment and Energy Investment Co. Ltd., an investment management subsidiary of Mizhuho Securities. Environment and Energy Investment Co. Ltd. was established in March 2006, and is one of the first Japanese fund management companies to have a ¥5 billion (US$42.22 million) funds pool.
Great Offshore Ltd. ('Great Offshore'), which is listed on the India stock market, has received US$41.1 million from The Carlyle Group. The private equity firm took up a 5% stake in the India-based offshore oilfield services provider. (India)
Samant Soma Wines Ltd. which sells wine under the Sula Wine brand, has received 500 million rupees (US$12.5 million) from Indivision India Partners. In 2005, GEM India Advisors ('GEM India') invested 150 million rupees to take a 30% stake in the wine maker. (India)
CVC Asia Pacific Ltd is offering to pay NT$18 billion (US$549 million) to buy all of Nien Made Enterprise Co., Ltd. ('Nien Made')'s shares. The general offer will close on 18th September. Nien Made is a window coverings manufacturer that is the main supplier to the US-based Home Depot. (Taiwan)
CLSA Capital Partners has invested US$20 million in Unitech Printed Circuit Board Corp. ('Unitech'), a leading printed circuit board maker. The investment was made through the private equity firm's ARIA Investment Partners III.
SBI Capital Co. Ltd. is to take a 54.38% stake in Living Corporation Inc., a real estate development firm that develops lease apartments for sale to real estate funds or corporations. The buyer is purchasing 8,700 shares representing a deployment of ¥2.81 billion. Currently, SBI Capital has an 8.95% equity position in the target company. (Japan)
HMV Group, the UK retailer of music and books, is to sell its Japanese businesses, HMV Japan KK and HMV Retail Limited, to Daiwa Securities' SMBC Principal Investments Co. Ltd. for ¥17 billion (US$140 million). The existing management will continue the businesses with the HMV brand.
Citigroup Venture Capital International has invested US$118 million in JBF Global Pte. Ltd., a subsidiary of India's JBF Industries Ltd..
In 2005, Citigroup Venture Capital teamed up with IL&FS Investment Managers to invest US$17.56 million in JBF Industries, the largest polyester chip maker in India. (Singapore)
Kuwait Finance House (Malaysia) Berhad is to invest S$4.36 million (US$2.88 million) to take a 60% holding in Synergy Healthcare Investments Pte Ltd ('Synergy Healthcare'), a wholly-owned subsidiary of Pacific Healthcare Holdings Ltd.'s ('Pacific Healthcare'). In February this year, the Kuwait investor also took up a controlling position in Aliph Pacific Pte Ltd. (Singapore)
India's Genpact Global Holdings ('Genpact') made its debut on the New York Stock Exchange on 2nd August. It offered its shares at US$14 each and, on its first day of trading, its share price closed at US$16.75. Genpact raised US$494 million, the largest offering undertaken by an India-based company on the US stock market.
In November 2004, General Atlantic Partners and Oak Hill Capital Partners each committed US$250 million to take respective 31.3% stakes in Genpact. Both investors have sold a small portion of their holdings upon Genpact's initial public offering.
PEOPLE ON THE MOVE
Mr Jamie Paton, co-head of 3i's Asia business, has resigned. Mr Paton is based in Hong Kong and has been with the firm for 20 years. (Hong Kong)
Mr. Francis Leung, former chairman of Asia for Citigroup Global Markets, has joined CVC Capital Partners as a senior advisor focusing on the investment opportunities in Greater China, according to The Wall Street Journal. (Hong Kong)
Intel Capital, the venture capital arm of the Intel Corporation, has appointed Mr. Pradeep M. Tagare, preciously was a senior investment manager of Intel Capital in USA, as a Director of the Mumbai office. (India)
Stay tuned for APER's forthcoming
issue for full coverage of the above!