12. February 2018

IEG China Outbound Investment News 3-18

Chinese reach for German Mobility and Clean Energy, Ant Financial is planning a funding round that could fetch a valuation similar to the world’s biggest and oldest banks and more highlight transactions focusing on Data, Healthcare, Media and Technology.

Geely to buy stake in Mercedes-Benz

GEELY, THE CHINESE PARENT of Volvo Cars, is set to buy a significant stake in Daimler, the company behind Mercedes-Benz and Smart. According to The Global Times, the state-run China Central Television (CCTV) network is reporting Zhejiang Geely is about to buy three to five per cent of Daimler for 4.0 billion euros ($6.2 billion). If this purchase does take place, Geely will become the second or third largest single investor in Daimler, as Kuwait holds 6.8 per cent, and the Renault Nissan Mitsubishi Alliance has 3.1 per cent. Private investors own a total of 19.4 per cent of Daimler, with the remainder (70.7 per cent) held by institutional investors.

Source: Automotive News

China's SGCC to buy stake in German grid operator 50Hertz

GERMAN GRID OPERATOR 50Hertz said that State Grid of China Corporation (SGCC) was in talks with its owners to buy a 20 percent stake in the German company. 50Hertz is one of four companies operating the German electricity grid, and is serving around 18 million customers in eastern Germany and the city of Hamburg. The Berlin-based company said it welcomed the bid by the Chinese grid operator, which is the world's largest electricity company and the second most valuable company in the world after US retailer Walmart. 50Hertz chief executive Boris Schucht said the Chinese investment would spur company efforts to make the German grid fit for the current build-up of renewable energy.

Ant Financial to raise $5 billion in equity

ANT FINANCIAL is planning to raise as much as $5 billion in fresh equity, which could value the Chinese company at more than $100 billion. Ant is expected to launch new equity raising in couple of months. Fundraising could bring the firm closer to an initial public offering.

Source: Reuters

China Creat completed acquisition of German blood plasma products maker - Biotest AG in 1.3billion euro

ON 19 JANUARY 2018, Biotest AG disclosed that the last remaining condition has been met for the takeover offer by Tiancheng (Germany) Pharmaceutical Holdings AG, the acquisition company of the Creat Group Corporation. Thus the unsolicited takeover offer announced on 18 May 2017 for the shares of Biotest AG became effective and could be settled.

Source: Biotest AG

By-Health to buy Australian probiotics producer to meet increasing demand in China

HEALTH FOOD PRODUCER By-Health Co. plans to buy a leading Australian probiotics producer to satisfy increasing consumer demand in China. The Guangdong-based group said yesterday it signed an acquisition agreement with the shareholders of Life-Space Group Pty Ltd. to purchase it for at most AUS690 million (USD558.6 million) in cash.
Probiotic products, including supplements and yogurts, have gained popularity in recent years, and their global market scale hit USD36 billion in 2017. The value of the market in China is about CNY45.5 billion (USD7.2 billion) and is expected to increase to CNY89.6 billion in 2022.

Sosurce: YiCai Global

Skydance Media to sell stake to Tencent

CHINESE INTERNET GIANT Tencent Holdings is buying a piece of Skydance Media, the Hollywood company behind "Terminator." Tencent has sealed a deal giving it a little less than 10% of Skydance, on terms that value the production company at approximately $1.5 billion, said a person with knowledge of the agreement. As part of the arrangement, Tencent and Skydance will co-finance movies, TV shows and videogame projects while lending their expertise to each other in their respective countries, the two companies said in a statement.

Source: The Wall Street Journal

China’s Suzhou Victory Precision acquires Finnish company to improve Intelligent Manufacturing

CHINA'S SUZHOU VICTORY Precision Manufacturing Technology Co. will spend EUR 40.8 million (USD 50.8 million) to acquire 100 percent equity of JOT Automation Oy, a Finnish manufacturing service provider of intelligent devices and electronic products.

Source: YiCai Global

CITIC Capital, Caixin Global To Acquire Euromoney Unit For $180.5M

AN INVESTOR CONSORTIUM led by funds managed by CITIC Capital Holdings Ltd. and Chinese media firm Caixin Global has reached an agreement to acquire a unit of London-listed Euromoney Institutional Investor PLC for US$180.5 million, the firms announced today. The Chinese investor group is buying the Global Markets Intelligence Division of Euromoney Institutional Investor PLC, Europe’s largest business and financial magazine publishers with interests in financial publishing and event organization.

Source: Nikkei Asian Review