CITIC Capital-led team targets buyout
Source: Agencies |
May 15, 2013, Wednesday
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Print Edition
Print Edition
A CONSORTIUM comprising China's CITIC Capital and Singapore state investor Temasek Holdings has agreed to buy Asiainfo-Linkage Inc for about US$900 million, joining a growing number of buyouts of US-listed Chinese companies.
The CITIC Capital-led group agreed to pay US$12 per share for Asiainfo-Linkage, which provides software to telecommunications companies, including China Mobile, China Unicom and China Telecom.
The price is 2.8 percent higher than Asiainfo's closing price of US$11.68 on Friday and the same as CITIC Capital's initial bid in January 2012.
Asiainfo's buyout is another example of private equity firms teaming up with founders of US-listed Chinese firms to take them private after a series of accounting scandals dented investors' faith in them.
The biggest buyout so far was the US$3.7 billion privatization of Focus Media Holding Ltd by a Carlyle Group-led consortium.
The CITIC-led consortium, which includes Asiainfo-Linkage's founder Edward Tian, is expected to offer about US$670 million in equity, while the rest of the funding will be through a US$330 million debt package, sources said. The sources declined to be named as the information was not public.
Asiainfo was not subject to any accounting scandals, yet the company's shares lost half their value in two years to 2011, after which CITIC Capital made its original offer last year.
Morgan Stanley acted as lead financial adviser to CITIC Capital, while Nomura International and ICBC International Capital Ltd were co-advisers to the private equity firm.
The CITIC Capital-led group agreed to pay US$12 per share for Asiainfo-Linkage, which provides software to telecommunications companies, including China Mobile, China Unicom and China Telecom.
The price is 2.8 percent higher than Asiainfo's closing price of US$11.68 on Friday and the same as CITIC Capital's initial bid in January 2012.
Asiainfo's buyout is another example of private equity firms teaming up with founders of US-listed Chinese firms to take them private after a series of accounting scandals dented investors' faith in them.
The biggest buyout so far was the US$3.7 billion privatization of Focus Media Holding Ltd by a Carlyle Group-led consortium.
The CITIC-led consortium, which includes Asiainfo-Linkage's founder Edward Tian, is expected to offer about US$670 million in equity, while the rest of the funding will be through a US$330 million debt package, sources said. The sources declined to be named as the information was not public.
Asiainfo was not subject to any accounting scandals, yet the company's shares lost half their value in two years to 2011, after which CITIC Capital made its original offer last year.
Morgan Stanley acted as lead financial adviser to CITIC Capital, while Nomura International and ICBC International Capital Ltd were co-advisers to the private equity firm.
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