China DealBook
A Newsletter on Deal Making in China

By: ChinaDesk | April 07, 2017

A Newsletter on Deal Making in China | M&A . Investment Banking .VC . PE . Deals

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Deal News

Unicom may get private-sector investor, pioneering next stage of China’s SOE reform
China Unicom, with the world’s sixth-largest network of mobile phone users, is poised to announce an investment by a private-sector investor, becoming a test case in the country’s reform of state-owned enterprises.

 

In a regulatory filing late on Wednesday, Unicom said its parent, China United Network Communications, aims to push forward with implementing the central government’s so-called mixed-ownership reform plan involving investors from the mainland’s private sector.

 

China Wins F.T.C. Approval to Buy Syngenta
The China National Chemical Corporation, or ChemChina, has won United States antitrust approval to buy the Swiss company Syngenta on condition that it divest three pesticides, the Federal Trade Commission said Tuesday.

 

Although the transaction still needs the green light from regulators in China, India and Mexico, it's hard to see why any of those jurisdictions would turn it down.

 

U.S. blockchain company Wyre acquires Chinese payments platform
San Francisco startup Wyre Inc, a cross-border payments firm, has acquired a Beijing-based platform,  in what he said was the first acquisition by a U.S. company of a Chinese blockchain business in the corporate payments space. Wyre's purchase of Remitsy strengthens the U.S. firm's push into the $500 billion U.S.-China business payments market.

 

HNA Venture Said to Bid for CapCo’s $375 Million London Venue
HNA Group Co., the Chinese conglomerate that last month purchased a stake in Deutsche Bank AG, is in talks to acquire the Olympia exhibition center in west London from Capital & Counties Properties Plc, according to three people with knowledge of the matter.

 

China's HNA may make bid of $2.30 apiece for CWT shares

HNA Group is in advanced talks about making a formal takeover offer for logistics provider CWT after almost a year of exclusive talks, in a deal valuing the Singapore-listed firm at about $1.4 billion.HNA plans to first buy a stake from CWT's biggest shareholder, C & P Holdings, which will trigger a takeover offer for the rest of the firm under Singapore listing rule.

 

China's Shandong Gold in $960 million deal for half of Barrick's Veladero mine
China's Shandong Gold Mining Co Ltd will pay $960 million for a 50 percent stake in Barrick Gold Corp's Veladero gold mine in Argentina, the Canadian miner said in a press release on Thursday.

 

Barrick Gold Corp's near billion-dollar deal with Shandong Gold Mining Co Ltd represents a rich premium for the Canadian miner, while making good on a long-promised plan to forge deep, long-lasting partnerships with China.

 

China's SAIC Motor to buy factory in India from General Motors
China's largest automaker SAIC Motor Corp Ltd on Wednesday said it had signed a formal agreement to buy a General Motors Co factory in India. SAIC did not give further details in its filing with the Shanghai Stock Exchange.

 

U.S., Japan in talks to prevent China acquiring Westinghouse: U.S. official
The Trump administration and the Japanese government are in discussions to ensure that the bankruptcy of Toshiba Corp's U.S. unit Westinghouse Electric Co does not lead to U.S. technology secrets and infrastructure falling into Chinese hands, a U.S. official said on Thursday.

 

China's Ant seeks to allay MoneyGram security fears
China's Ant Financial tried to soothe security concerns about its proposed $880 million takeover MoneyGram International Inc on Thursday, saying it intends to store U.S. user data locally once the deal closes.

 

US Chipmaker Analogix Semiconductor Is Now China Owned, Chinese IPO Is Next Step
An investor consortium led by Chinese private equity firm Beijing Shanhai Capital Management Co, Ltd. has completed its US$500 million acquisition of Analogix Semiconductor, Inc., a Santa Clara, California-headquartered chipmaker for portable devices such as smartphones, cards and displays.

 

Analogix, which has the majority of its engineering operations located in Beijing, China, supplies leading brands such as Apple, Samsung, LG, Microsoft, Google, and Lenovo.

 

Parking Operator Indigo Said to Draw Chinese, Buyout Funds
The owners of French parking lot operator Indigo started a sale process this week, sending information out to potential bidders in China, as well as infrastructure and private equity firms, according to people familiar with the matter.


If there's one message to take away from Asian buyers' heated interest in French parking lot operator Indigo, it's that investors remain hungry for yield and assets are scarce. Chinese firms appear particularly keen, with Li Ka-shing's Cheung Kong Infrastructure Holdings Ltd., China Oceanwide Holdings Group Co. and Fosun International Ltd. all expressing interest in Indigo, according to people familiar with the matter.

 

Hillhouse, FountainVest agree $1b Zhaopin take-private
Hillhouse Capital and FountainVest Partners, along with Australia’s Seek International, have agreed to buy US-listed Chinese recruitment website Zhaopin in a deal that values the company at $1.01 billion.

 

The consortium will pay $18.20 per American Depositary Share (ADS), according to a regulatory filing – a premium to the April 5 closing price of $17.19 and a slight increase from the $18 per-share price...

 

Sequoia Co-Leads $1B Round In News App Toutiao, Minting China's Biggest Media Company
Sequoia Capital and CCB International, an investment unit of China Construction Bank Co., have led a series D investment of around US$1 billion in Chinese personalized news recommendation app operator Toutiao.

 

The massive financing round, reported by Chinese media citing insiders and not yet announced by Toutiao, values the five-year-old company at over US$12 billion, which is higher than the combined valuations of China's three largest publicly listed media companies.

 

Fresenius Medical Care completes acquisition of a 70% equity interest in Kunming Wuhua Healthcare Hospital Co. Ltd.
Fresenius Medical Care, the world's leading provider of dialysis products and services announces the acquisition of 70% equity interest in Kunming Wuhua Health Hospital (Wuhua Hospital) in China, specialized in chronic-disease management and haemodialysis.

 

Firm Founded by U.S. Commerce Secretary Wilbur Ross to Form China Steel Venture
The private-equity firm founded—but long ago sold—by U.S. Commerce Secretary Wilbur Ross Jr. is forming a venture to invest in China’s steel industry along with one of the country’s largest producers, according to a statement.

 

W.L. Ross & Co. plans to team with an arm of Shanghai-based China Baosteel Corp. and other investors to acquire steel-industry assets in China with an aim at improving the sector’s long-term “commercial viability,” .

 

Volkswagen Invests $180 Million in a Chinese AI Startup
Mobvoi Inc., the Chinese artificial intelligence startup backed by Google, is getting a $180 million investment from Volkswagen AG to join a race to build the technology into cars.

 

FountainVest, CMC complete exit from IMAX China
FountainVest Partners and CMC Capital Partners have completed their exit from movie theater operator IMAX China, selling their last holding for an estimated HK$836 million ($108 million). The GPs offloaded a 5.9% stake to an unnamed investment bank for HK39.72 per share, according to a release.

 

VCs back China female-focused consumer finance start-up
Shanghai Mime Financial, a consumer finance platform targeting the young females in China, has raised a Series C round led by domestic investors Haier Capital, Xiyu Capital and Panda Capital. The investment round amounted to hundreds of millions in renminbi.

 

Eight Roads Ventures Leads Series C Round In Chinese Parenting Platform Davdian
Eight Roads Ventures, formerly Fidelity Growth Partners, has led a series C round investment in Beijing-based parenting platform Davdian.

 

China auto trading platform Souche gets $180m Series D
Warburg Pincus has led a $180 million Series D round of funding for Chinese online second-hand car trading platform Souche, less than five months after the company’s previous round worth $100 million.

 

ACP joins $166m investment in Chinese solar player
Asia Climate Partners (ACP), a fund set up by the Asian Development Bank (ADB), Orix Corp, and Robeco Institutional Asset Management, has participated in a $166.7 million investment in United Photovoltaics Group (United PV), a Chinese solar power plant developer.

 

VCs back Series C for China mother-and-baby player
Eight Roads Ventures has led a group of investors in a Series C round of funding for Mama+, a social networking and e-commerce platform focused on China’s mother-and-baby market. Financial details were not disclosed.

 

Chenhui Leads $21M Round In Chinese Cloud Exchange Network Firm Syscloud
Chinese investment firm Chenhui Venture Partners has led a RMB150 million (US$21 million) series A round in Syscloud Technology Ltd, a Suzhou city-based cloud exchange network service provider.

 

China's Didi Chuxing To Add Bike Sharing Service Via Ofo Partnership
A week after Chinese bike sharing company Mobike said it would allow users to rent bikes via Tencent's Wechat app, rival ofo confirmed that it would be incorporated into Didi Chuxing's platform. The move signifies the kind of cut-throat competition and fast movements in China's technology industry.

 

SIG, Redpoint Lead $20M Round In Chinese Charger Sharing Company Laidian
Venture capital investors SIG and Redpoint Ventures China have led a US$20 million series A round in Laidian, a Shenzhen-based mobile device charger sharing start-up.

 

Banyan raises $725m across US dollar, renminbi funds
Banyan Capital has raised more than RMB5 billion ($725) million across two China-focused venture capital funds – one US dollar-denominated and the other in renminbi.

 

China distress investor DCL launches debut US dollar fund
DCL Investments, a China-focused distressed debt and special situations manager set up former executives at CDH Investments and Shoreline Capital, is targeting around $300 million for its first US dollar-denominated fund.

 

Ford to Make Electric Cars in China Amid Green Drive
Ford Motor Co. said Thursday that it would start building electric cars in China to tap into a state-sponsored boom in green-energy vehicles.


When demand for cars starts fading elsewhere, auto makers turn to the world’s largest car market for growth. That reflexive move is unlikely to work so well for Ford Motor.

 

FIFA Scores Second Chinese Sponsor as World Cup Draws Near
China’s Hisense Group has signed with FIFA to become a World Cup sponsor, a major win for an organization dogged by a corruption scandal and struggling to enlist corporate partners for the world’s most popular sporting contest.

 

Companies

25-Year-Old May Soon Give Hong Kong Its First $1 Billion Startup
Hong Kong may soon get its first billion-dollar startup, thanks to a 25-year-old entrepreneur whose company leases phones to travelers. Tink Labs Ltd. is in the process of raising about $40 million and aiming for a valuation of more than $1 billion, according to people familiar with the matter.

 

The 90-Minute Fall of a Chinese Tycoon
It took more than a decade for Yang Kai to amass one of China’s most celebrated dairy fortunes. He may have lost it in less than 90 minutes. China Huishan Dairy Holdings Co. said its four independent non-executive directors resigned as the fallout continues from its Hong Kong-listed shares falling 85% in one day and its treasurer disappearing.

 

Rivals are watching Amazon’s China logistics play

Amazon’s logistics business is helping the company finally tap into the Chinese market, after facing difficulties gaining traction with their online retail services in the country. The Financial Times reports that the company’s shipping push is quietly growing, and competitors are taking notice.

 

Other Updates

XiongAn New Area Fixed Investment Seen At RMB4 Trillion And RMB2 Trillion In GDP
The newly established XiongAn New Area could require RMB4 trillion in fixed asset investment over the next 20 years and account for RMB2 trillion in GDP, as it strives to become a growth engine in the Beijing-Tianjin-Hebei region, says a UBS Securities report.

 

Chinese Firms Shy Away From European Debt
Chinese corporate bonds issued in European currencies lag far behind their dollar counterparts, a trend expected to continue as the U.K.’s exit from the European Union threatens to shake financial markets on the continent.

 

China's spending on robotics to hit $59.4b in 2020: IDC
International Data Corp (IDC) reports that China will be spending $59.4 billion on robotics and related services by 2020.

Category: Daily Newsletter 

Tags: China, Venture Capital, ChemChina, Ant Financial, China Newsletter, Bao Steel, Analogix Semiconductor, Banyan Capital, Fountainvest, Redpoint, Shandong Gold Mining, Veladero, CWT, Sequoia China, China Unicorn, Toutiao, Mergers, Acquisitions, HNA Group, IMAX China, Souche, Syngenta, Barrick Gold, SAIC Motors, Private Equity, General Motors, CMC Capital, Hillhouse Capital, MoneyGram, Zhaopin, China M& A News, Huishan Dairy Holdings, SOE Reform, Wyre, Remitsy, CapCo, Westinghouse, Indigo, Kunming WuhuaHealth, Fresenius Medical Care, W L Ross & Co, Volkswagen, Mobvoi, Shanghai Mime Financial, Haier Capital, Xiyu Capital, Panda Capital, Davdian, Eight Roads Ventures, Asia Climate Partners, United PV, Mama, Chenhui Venture Partners, Syscloud, SIG, Laidian, DCL Investments, Hisense, FIFA, Tink Labs, Amazon China, XiongAn New Area