26. January 2018

IEG China Outbound Investment News 2-18

To stay on top of things, IEG provides bi-weekly updates about the Chinese Investment Banking ecosystem. This time we cover relevant transactions with focus on Hardware, Software, Artificial Intelligence, Technology, E-Commerce, Health and Social Networks.

US approves Chinese acquisition of semiconductor manufacturing equipment firm Akrion Systems

CHINESE STATE-OWNED semiconductor manufacturing supplier Naura Microelectronics Equipment Co. Ltd announced that it had completed a US$15 million acquisition of U.S. company Akrion Systems LLC, a supplier of surface preparation for solar and semiconductor devices. The deal is said to be the first Chinese acquisition of a U.S. company to be approved by CFIUS under the Trump administration. It is a rare case amid toughened control and a slew of cancelled Chinese acquisitions in the U.S., but the deal’s small size seems to suggest it should not be taken as a signal that approvals will get any easier for Chinese investors in the U.S.

Source: China Money Network

Tencent, Yonghui Superstores to invest in Carrefour China

CHINESE TECH GIANT Tencent Holdings Ltd. and Shanghai Stock Exchange-listed Yonghui Superstores has signed a term sheet with Carrefour regarding a potential investment in Carrefour China, the French retailer announced today. The investment is part of Tencent’s continuous push in the retail sector in China, further intensifying its direct competition with China’s largest e-commerce player Alibaba Group. Last December, Tencent bought a 5% stake in Yonghui Superstores, and made a joint
investment with JD.com, Inc of approximately US$863 million in Chinese online discount retailer Vipshop Holdings Ltd. (NYSE:VIPS). Upon completion of this investment, Carrefour will remain the largest shareholder of Carrefour China.

Source: China Money Network

Google, Tencent, and Sequoia invest in pharmaceutical startup XtalPi

ALPHABET'S Google, Tencent Holdings, and Sequoia Capital China have joined a $15 million B series funding round for Boston- and Shenzhen-based artificial intelligence (AI) pharmaceutical firm XtalPi. Sequoia led the round, which brings the startup’s total funding amount to $20 million, XtalPi and Google said in statements on Wednesday. XtalPi uses AI, cloud computing and quantum physics to improve drug design processes. The deal is the first co-investment by Google and Tencent since the two companies revealed this month that they have signed a patent sharing agreement, paving the way for cooperation between the two firms. Google has recently ramped up investment in the Chinese market where its search engine remains blocked. Last month it announced it had launched a dedicated AI lab in the country.

Source: Reuters

Zhongshan Broad-Ocean Motor to invest in Germany's Hydrogenious Technologies

ZHONGSHAN BROAD-OCEAN MOTOR signs agreement to invest in Germany’s Hydrogenious Technologies GmbH. The investment will be 6.5 million Euros in Hydrogenous Technologies and will own a 10.20% stake.

Source: Reuters

JD.com invests in Tiki.vn, boosts Southeast Asia presence

CHINESE E-COMMERCE company, JD.com Inc. has agreed to invest in Vietnamese ecommerce firm Tiki.vn.
The investment will expand JD.com’s presence in Southeast Asia and also fend off further competition from Alibaba Group Holding Ltd BABA and Amazon.com Inc AMZN. However, the amount of the funding has not been disclosed.

Source: Zacks Equity Research

China BlueSail Medical announced to acquire Singapore Biosensors International with RMB 5.895 billion (aprox.€0.76 billion)

THE BIOSENSORS INTERNATIONAL group manufactures innovative medical devices for interventional cardiology and critical care procedures.

Source: Morning Whistle

China’s Kunlun acquires gay social network App Grindr for $152M

CHINESE GAMING COMPANY Kunlun Group Ltd. has acquired the remaining stake of Grindr, a U.S.-based dating app for gay men, for US$152 million. The acquisition comes after Kunlun, listed on the Shanghai Stock Exchange, acquired a 61.53% stake of Grindr in January 2016. This time, the company purchased the remaining 37.47% stake for US$152 million, valuing the social networking app at US$395 million, up from US$245 million two years ago.

Source: China Money Network