CAGP Invests over USD60mn into Chinese Enterprises
CAGC | Quote | Chart | News | PowerRating -- Carlyle Asia Growth Partners (CAGP), which is under the US private equity fund Carlyle Group, has just made investment into three growing enterprises based in China's Mainland, with the combined amount of more than USD 60 million.
The three target companies are Nantong Rainbow Heavy Industries, engaged in the production of the hatch covers; China Agritech, engaged in the agricultural fertilizer production; and iTour, engaged in the travel service and consulting sector. Carlyle Group vows to provide help for the three target companies to enhance their brand recognition, corporate governance, market promotion and distribution channels, so that the three companies can further enlarge the market share and become leaders in their own industries.
By far, CAGP has made 25 investment deals in the Asian market, covering the areas of energy, consumer goods, education, medical treatment, media and so forth. Up to 80% of the total investment was made into China and India, indicating the confidence of CAGP in the two major emerging economic powers.
CAGP has always put its focus on those growing enterprises. China Forestry Holdings Co. (0930.HK), for example, launched the H-share initial public offering in Hong Kong on November 19, 2009, expecting to raise about HKD 1 billion from the IPO. As the second biggest shareholder of the company, CAGP takes a 11.18% stake in China Forestry.
Carlyle Group, the parent company of CAGP, earlier sold 57 Zhongfang Forest Villas to Tian An China Investment Company Limited (0028.HK). As early as 2006, Carlyle Group had bought 110 Zhongfang Forest Villas at USD 120 million or CNY 950 million, translating to about CNY 9 million per villa.
This time, the Hong Kong-listed Tian An China bought 57 out of the 110 villas at CNY 755 million in total, translating to CNY 13.25 million per villa on average. On the one hand, Carlyle Group has gotten fat returns on such investment; and on the other hand, Tian An China can still expect for the appreciation of these villas in the future.
As early as 2005, XCMG Group had wanted to usher in Carlyle Group as the strategic investor of its listed vehicle XCMG Construction Machinery Co. (000425.SZ), but relevant regulatory departments of China did not approve of the deal, even though Carlyle Group only hoped to have a 45% stake in the Shenzhen-traded company.
(USD 1 = CNY 6.82)
Source: dycj.ynet.com (November 20, 2009)
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