12 Jul 2010

NEWS
AES and CIC Will Not Proceed With Wind Joint Venture

Khazanah Buys Motive Batteries

INSTITUTIONAL INVESTORS
NZ Super Fund to Partner with Waterman

IFC Invests in China WindPower

FUNDS
CITIC Increases Capital for its PE Arm

Capital City Launches Four VC Funds

AMTC Forms JV Media Fund with CIBN

China Aviation Fund Reaches Its First Close

INVESTMENTS
Nexus Venture Backs Online Hotel Booking Portal

Omidyar Network Leads Latest Investment in D.light Design

Actis and Khazanah Take Positions in IDFC

Blackstone & Goldman Sachs Complete Investment in EMOBILE

CITIC Capital Prepares to Pack a Deal

Blackstone's Pet Deal

IBM Boosts Telecom IT player

Tsing Capital in Energy Saving Transformer

Carlyle Feeds Another Deal to its China Portfolio

Lombard Raises Stake in Medical City

DIVESTMENTS
Affinity Sells Loscam to China Merchant Group

Istithmar Takes Its Last Flight with SpiceJet

Swiss Tech Fund Exits from Ocean Sparkle

Weak IPO Battery for Chaowei








Please click the above for excerpts from the latest edition of APER Greater China Edition









News Flash

BREAKING NEWS

The first half of 2010 registered vibrant private equity activities:-

Institutional Investors

Allocations to Funds

  • There had been no notable increase in the number of known allocations to funds, virtually the as same as that for 2009    
  • China-based investors dominated the allocation profile, accounting for two-thirds of the allocation numbers    

Direct Investment

  • There had been substantial increase in direct investment activities undertaken by institutional investors with 39 deals that amounted to US$8.9 billion in aggregate    

Funds

  • US$15.4 billion of fresh capital came into the market in the first half of 2010, an increase of 48.5%
  • Funds for growth/expansion situations dominated, at US$10.6 billion
  • China funds accounted for 68.3% of the US$15.4 billion
  • Renminbi funds accounted for more than half of the fresh capital pool
  • India saw just under US$700 million of capital coming into its market, a far cry from the US$3.3 billion attained during the same period in 2009

Investments

  • US$10.7 billion in total transaction, compared to US$9.0 billion for corresponding period in 2009
  • Companies at growth/expansion stages dominated and accounted for US$7.6 billion
  • China maintains its position as the most-favoured investment destination, attracting US$3.6 billion
  • India ranked second and attracted US$2.4 billion

Divestments

  • US$5.9 billion was returned during the first half of 2010
  • Buyouts investors clocked an aggregate return of US$1.2 billion, a substantial increase to that recorded for 2009
  • China and India dominated the capital return landscape, and accounted for 66% of the returned aggregate

NB: all comparisons to 2009 figures are based on the same period, being the first half of the year


NEWS

AES and CIC Will Not Proceed With Wind Joint Venture

China Investment Corporation ('CIC') and AES Corporation ('AES') announced the cancellation of their offshore wind generation joint venture. In November last year, CIC agreed to invest US$571 million in AES Wind. (Offshore)




Khazanah Buys Motive Batteries

Khazanah Nasional Bhd. has allocated US$21 million as a cornerstone investor of Chaowei Power Holdings Ltd. which went public on The Stock Exchange of Hong Kong on 7th July. (People's Republic of China)



INSTITUTIONAL INVESTORS

NZ Super Fund to Partner with Waterman

New Zealand Superannuation Fund has committed NZ$30 million (US$20.7 million) to the second private equity fund raised by Waterman Capital which is a New Zealand-owned and -operated private equity firm that focuses on investing in and adding value to small- to mid-market businesses. (New Zealand)




IFC Invests in China WindPower

International Finance Corporation has agreed to deploy around US$10 million for Hong Kong-listed China WindPower Group Ltd. (People's Republic of China)



FUNDS

CITIC Increases Capital for its PE Arm

CITIC Securities Co., Ltd. announced an additional commitment to the tune of Rmb2.2 billion (US$324.7 million) to its direct investment arm, Gold Stone Investment Co., Ltd., virtually doubled the latter's capital pool. (People's Republic of China)




Capital City Launches Four VC Funds

The Beijing Municipal government recently initiated four venture capital funds in the capital city. The four funds focus extensively on telecommunications, new energy, bio-medical and innovative technologies industries. Together, they represent a total fund pool of Rmb1 billion (US$147.6 million). (People's Republic of China)




AMTC Forms JV Media Fund with CIBN

Singapore-based Asia Media & Technology Capital Management Pvt. Ltd. has joined hands with China Information Broadcast Network Co., Ltd. to launch a US$500 million venture capital fund that targets media and technology companies. (People's Republic of China)




China Aviation Fund Reaches Its First Close

The Rmb20 billion (US$2.9 billion) China Aviation Industrial Fund, the first that focuses on the country's aviation industry, has achieved its first closing at Rmb1 billion. The fund was launched in April 2009. (People's Republic of China)



INVESTMENTS

Nexus Venture Backs Online Hotel Booking Portal

Nexus Venture Partners announced its 70 million rupees (US$1.5 million) investment in Magic Rooms Solutions India Pvt. Ltd. which is the country's first online global hotel distribution system. (India)




Omidyar Network Leads Latest Investment in D.light Design

Omidyar Network has led the latest round of financing of D.light Design which raised an aggregate US$5.5 million. D.light Design designs and manufactures consumer products for households. (India)




Actis and Khazanah Take Positions in IDFC

Actis Capital LLC and Khazanah Nasional Bhd. have together subscribed an aggregate 8.4 billion rupees (US$179.6 million) to Infrastructure Development Finance Company Ltd. which was recently classified under the "infrastructure finance company" category that would allow it to raise up to 50% of its funds overseas without having to seek government approval. (India)




Blackstone & Goldman Sachs Complete Investment in EMOBILE

The Blackstone Group and Goldman Sachs Group, Inc. have completed their investment in EMOBILE Ltd. for ¥45 billion (US$502.6 million). EMOBILE is a mobile broadband telecommunications service provider. (Japan)




CITIC Capital Prepares to Pack a Deal

CITIC Capital Partners is reportedly in talks to invest US$65.5 million in Tri-Wall Japan Co., Ltd., a company that provides heavy-duty packaging materials, designs and services, according to The Wall Street Journal. (Japan)




Blackstone's Pet Deal

The Blackstone Group has committed an approximate US$45 million to Singapore-listed China Animal Healthcare Ltd. which is engaged in the manufacture, sale and distribution of animal drugs. (People's Republic of China)





IBM Boosts Telecom IT player

IBM (China) Corp., through its IBM China Investment Fund, has invested in China-based Bright Oceans Inter-Telecom Co., Ltd., representing a deployment of Rmb50 million (US$7.4 million). (People's Republic of China)





Tsing Capital in Energy Saving Transformer

Tsing Capital has invested Rmb30 million (US$4.4 million) in Shenyang Haocheng Electric Co., Ltd. an energy-saving electrical transformer manufacturer. (People's Republic of China)





Carlyle Feeds Another Deal to its China Portfolio

The Carlyle Group is to take an 11.3% stake in the Hong Kong-listed C.P. Pokphand Co., Ltd. which focuses on animal feeds development and production in China. The transaction came on the heels of a recent US$190 million commitment to China Fishery Group Ltd. (People's Republic of China)




Lombard Raises Stake in Medical City

Lombard Investments has increased its ownership in The Medical City ('TMC'), a private tertiary-care hospital. The fresh capital will be used by TMC to finance expansion. (Philippines)




DIVESTMENTS

Affinity Sells Loscam to China Merchant Group

Affinity Equity Partners sold Loscam Ltd. a provider of returnable package handling solutions in Australia and Asia, to China Merchant Group, concluding an investment that began back in 2005. Reportedly, the deal size was between A$650 million (US$547 million) to A$700 million. (Australia)




Istithmar Takes Its Last Flight with SpiceJet

Dubai-based Istithmar World Capital has sold all of its interest in SpiceJet Ltd. and recorded a return of US$25.4 million. The sale also concluded a partnership that began more than six years ago. (India)





Swiss Tech Fund Exits from Ocean Sparkle

BTS Investment Advisors, manager of the Swiss Technology Venture Capital Fund, has sold its interest in Ocean Sparkle Ltd. to Eredene Capital plc for US$11.1 million. (India)





Weak IPO Battery for Chaowei

Chaowei Power Holdings Ltd. ('Chaowei') made its debut on The Stock Exchange of Hong Kong. Chaowei is a leading lead-acid motive battery manufacturer in China that counts Hony Capital as a recent investor. (People's Republic of China)




Stay tuned for APER's forthcoming issue for full coverage of the above!

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