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Seven Media Reports Write-Downs

Seven Media Group, the joint venture between Seven Network Ltd. and Kohlberg Kravis Roberts & Co. recorded substantial write-downs for the six months ending December 2008. According to Seven Network, which holds a 47% in Seven Media Group, its portion of the write-down was over A$793.9 million (US$543.0 million).
In late 2006, KKR took a 53.0% stake in Seven Media Group for A$3.2 billion. (Australia)


March 2, 2009 NEWS Seven Media Reports Write-Downs Curtain Falls on CVC's Privatisation of Natural Beauty REX Holdings to Offload am/pm Japan Taizinai - Entrusted to Government's Hands INSTITUTIONAL INVESTORS Apax Enlists Asian Sovereign Funds as Shareholders FUNDS Singapore Lender Forms US$100 million China Fund INVESTMENTS 3i Logs Its Largest Deal in India Piramal Health Fund Closes First Deal Buyout of Sato Food Obstructed Media Company Raises Additional Funds Investors Take Stake in Chemical Company Walden Invests in Solar Energy Co. DIVESTMENTS CVC Intends To Dispose of Part Of I-Med PEOPLE ON THE MOVE Messrs Boris Bong and Wen Tan Mr R. Venkatesh	News Flash
	NEWS Seven Media Reports Write-Downs Seven Media Group, the joint venture between Seven Network Ltd. and Kohlberg Kravis Roberts & Co. recorded substantial write-downs for the six months ending December 2008. According to Seven Network, which holds a 47% in Seven Media Group, its portion of the write-down was over A$793.9 million (US$543.0 million). In late 2006, KKR took a 53.0% stake in Seven Media Group for A$3.2 billion. (Australia) [Back to the table of contents] Curtain Falls on CVC's Privatisation of Natural Beauty CVC Asia Pacific ('CVC')'s attempt to privatise the Hong Kong-listed Natural Beauty Bio-Technology Limited ('Natural Beauty') has been foiled, following the target company's failure to receive approval “by the requisite majority at the court session held on 26th February 2009”, according to a statement from Natural Beauty. The target company is a skin-care product and treatment provider which was valued at HK$2.4 billion (US$307.7 million) by CVC. (Hong Kong) [Back to the table of contents] REX Holdings to Offload am/pm Japan Advantage Partners LLP-controlled REX Holdings Inc. ('REX') will be disposing of its financially-troubled am/pm Japan Co., Ltd. ('am/pm Japan') to Lawson, Inc. ('Lawson'). The transaction price carries a “memorandum value”, according to a public statement from the buyer. REX currently holds a 62.6% stake in am/pm Japan. In 2006, Advantage Partners committed ¥45.7 billion to take control of REX, along with its founding entrepreneur. (Japan) [Back to the table of contents] Taizinai - Entrusted to Government's Hands Taizinai has come under control of the Zhuzhou government, according to Mr Wen Dibo, who will become chairman of the company that will oversee the future operation of Taizinai. Mr Wen revealed this latest chapter of Taizinai in his interview with the local press. In late 2006, Taizinai received US$73 million from Actis, Goldman Sachs and Morgan Stanley Private Equity Asia. Taizinai is facing a debt pile of 2.6 billion yuan (US$388 million). (People's Republic of China) [Back to the table of contents] INSTITUTIONAL INVESTORS Apax Enlists Asian Sovereign Funds as Shareholders Two Asian sovereign wealth funds, GIC Special Investments and Australia's Future Fund have acquired a combined 7.7% stake in the management company of Apax Partners LLP ('Apax') for an undisclosed sum. The deal was first reported in the Financial Times. Apax has since confirmed this transaction to ASIA PRIVATE EQUITY REVIEW. (People's Republic of China) [Back to the table of contents] FUNDS Singapore Lender Forms US$100 million China Fund DBS Private Equity announced the establishment of a US$100 million yuan-denominated fund that is wholly-owned by DBS Bank. It will invest in mid-to-late stage companies, with an average commitment size between US$10 million to US$20 million. DBS Private Equity will open an office in Shanghai. (People's Republic of China) [Back to the table of contents] INVESTMENTS 3i Logs Its 2nd Largest Deal in India 3i Group plc ('3i') announced its US$161 million investment in Krishnapatnam Port Company Ltd.. The transaction was made through its US$1.2 billion 3i India Infrastructure Fund. Krishnapatnam Port is in the state of Andhra Pradesh. 3i was first known to be seeking the Indian government's approval to invest in the port company in mid-2008. In 2007, 3i invested US$227 million in Adani Power Ltd. (India) [Back to the table of contents] Piramal Health Fund Closes First Deal India Venture Advisors, the healthcare-focused private equity fund associated with Mr Ajay Piramal, founder of the publicly-listed Piramal Healthcare Ltd., has completed its maiden investment. The fund is believed to have taken at least a 30% stake in Kavery Medical Centre and Hospitals Ltd. for an undisclosed sum. (India) [Back to the table of contents] Buyout of Sato Food Obstructed The tender offer for shares in Sato Foods Industries Co. Ltd. ('Sato Food') has been blocked, following the company's 50% stakeholder, SFCG Co. Ltd., having filed for bankruptcy. SFCG is one of the largest financial services companies that became insolvent in late February. Integral Corporation, established by some former executives of Unison Capital, had just begun its tender offer for Sato Food's shares in a buyout deal that could have represented a deployment of ¥13.2 billion (US$135.7 million). (Japan) [Back to the table of contents] Media Company Raises Additional Funds Digital Media Group ('DMG'), a provider of digital media and advertising solutions for subway systems in China, has raised US$30 million from two of its existing investors, Oak Investment Partners and Gobi Partners. DMG's earlier financial investors include Sierra Ventures and NIF SMBC Ventures. (People's Republic of China) [Back to the table of contents] Investors Take Stake in Chemical Company Shenzhen Capital Group and China Israel Value Capital have invested approximately US$2.5 million in Zibo Qilu Yixi Luhua Chemical Co. Ltd., a producer of a range of chemicals. China Israel Venture Capital is a private equity fund jointly established by Israel-based Platinum Neurone Ventures and Shenzhen Capital Group. (People's Republic of China) [Back to the table of contents] Walden Invests in Solar Energy Co. Walden International announced its participation in the Series B financing of SolarEdge Technologies, Inc. ('SolarEdge'). The new round of financing was led by Vertex Venture Capital and joined by the existing investors in SolarEdge. The investment amount was not disclosed. This is the second round of financing provided by Walden International to the companyl. (Offshore) [Back to the table of contents] DIVESTMENTS CVC Intends To Dispose of Part Of I-Med CVC Capital Partners and CVC Asia Pacific Limited ('CVC') are known to have mandated investment bankers to sell the oncology and cardiology diagnostic businesses of I-Med Network ('I-Med'). The latter was part of the DCA Group Limited of which CVC took control in 2006 in a deal that valued the target's enterprise value at A$2.7 billion (US$2.1 billion). (Australia) [Back to the table of contents] PEOPLE ON THE MOVE Messrs Boris Bong and Wen Tan Messrs Boris Bong and Wen Tan of Squadron Capital Advisors Limited have been promoted to take on the positions of Managing Directors. (Hong Kong) [Back to the table of contents] Mr R. Venkatesh Temasek Holdings Advisors India Pvt. Ltd has appointed Mr R. Venkatesh to head its Chennai office in India. (India) [Back to the table of contents]
Stay tuned for APER's forthcoming issue for full coverage of the above! About Centre for Asia Private Equity Research Ltd To stop receiving this News Flash in future, click here or reply to unsubscribe@asiape.com with "Unsubscribe" in the subject header.