Bottom line: Fosun’s New York IPO plan for US insurer Ironshore could draw strong interest due to Fosun’s China and global connections, and may ultimately raise up to $1 billion later this year.
Fosun eyes NY listing for Ironshore
China’s recent global buying spree has created some interesting investment opportunities, as Chinese acquirers increasingly look to western investors to help pay for their purchases. One such new opportunity is in the headlines this week, with word that Chinese private equity giant Fosun (HKEx: 656) is aiming to launch a New York IPO for its recently acquired US insurer Ironshore. In this growing trend, the Chinese investors are hoping to generate some buzz for this kind of IPO by taking regionally-focused assets and repositioning them as global plays, often with a big China focus. Read Full Post…
The following press releases and news reports about China companies were carried on July 6. To view a full article or story, click on the link next to the headline.
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Hon Hai (Taipei: 2317) Plans $1.5 Bln HK IPO for Foxconn Interconnect Technology Unit (English article)
Bottom line: Postal Savings Bank’s IPO is likely to get a moderately strong reception and come close to the upper end of its $10 billion target, while Yum China’s IPO is unlikely to come until the end of this year at earliest.
Yum China spin off plans hit delays
What’s likely to become the world’s biggest IPO in 2 years has just officially launched in Hong Kong, with word that China’s Postal Savings Bank has made its first filing for an offering that could raise up to $10 billion. Meantime, another high-profile IPO by the Chinese unit of fast-food giant Yum Brands (NYSE: YUM) is getting hit by delays, as operator of the KFC chain seeks key local backers in the run-up to a listing that could also come in Hong Kong. The Yum offering could also be quite large at around $2 billion, though it appears the deal may not come now until the end of this year or may even get pushed back to 2017. Read Full Post…
The following press releases and news reports about China companies were carried on July 1. To view a full article or story, click on the link next to the headline.
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China’s Postal Savings Bank Files for Potential $10 Bln IPO (English article)
21Vianet (Nasdaq: VNET) Announces Withdrawal of Going Private Proposal (GlobeNewswire)
Bank of China (HKEx: 3988) to Sell Assets to HK Unit for $887 Mln (English article)
Shenzhen Businessman Buys Australian Soccer Club Newcastle United Jets (Chinese article)
Billionaire Wang’s Bid for Global Theater Behemoth Falters (English article)
The following press releases and news reports about China companies were carried on June 30. To view a full article or story, click on the link next to the headline.
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China Resources Pharmaceutical Launches HK IPO, Aims to Raise up to $1 Bln (Chinese article)
Kuka (Frankfurt: KU2) Management Approves Sale to Midea (Shenzhen: 000333) (Chinese article)
Wanda Property (HKEx: 3699) Deal Faces Hurdles as APG Balks Over Price (English article)
The following press releases and news reports about China companies were carried on June 29. To view a full article or story, click on the link next to the headline.
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Yum (NYSE: YUM) China Stake Sale Said Delayed as Suitors Miss Deadline (English article)
Pfizer (NYSE: PFE) to Invest $350 Mln in China Biotech Hub, First in Asia (English article)
Fosun (HKEx: 656) Plans to List US Insurer Ironshore ‘As Soon As Possible’ (English article)
ZTE (HKEx: 763) Says Temporary License Extended for Import of US Goods (HKEx announcement)
Bottom line: Midea’s purchase of Germany’s Kuka and Italy’s Clivet, and SMIC’s purchase of Italy’s LFoundry represent a wave of opportunistic buying by Chinese firms in Europe, with more such deals to come under Beijing’s directive to go global.
Midea buys Italy’s Clivet
A sluggish European economy, made worse by last week’s shock Brexit, is providing fertile shopping ground for Chinese firms, with 3 large deals in the headlines as the new week begins. Two of those involve home appliance maker Midea (Shenzhen: 000333), whose controversial and very expensive plan to buy a big stake in German robotics maker Kuka (Frankfurt: KU2G) looks set to reach a final agreement this week. At the same time, Midea has reached another deal to buy an Italian rival in the air conditioner space. Last but not least, faded semiconductor maker SMIC (HKEx: 981; NYSE: SMI) has announced another deal in Italy to buy the smaller rival LFoundry. Read Full Post…
Bottom line: Sanpower’s bid to become McDonald’s main China franchise partner looks like a long-shot, and China Resources or Beijing Capital Agribusiness are the most likely to emerge as winners in a deal valued at $2-$3 billion.
Sanpower eyes McDonald’s
What does global fast-food giant McDonald’s (NYSE: MCD) have in common with niche retailers Brookstone of the US and Britain’s House of Fraser? The answer: All 3 could soon become linked through Chinese conglomerate SanpowerGroup, while already owns the 2 niche retailers and is now making a much bigger bid for most of the McDonald’s stores in China and Hong Kong. Sanpower is the latest company to enter the bidding for the China McDonald’s stores, which are being sold as the US fast food giant moves to a franchise model in the market to replace its previous approach of self-owned stores. Read Full Post…
Bottom line: Alibaba’s victory in a shareholder lawsuit is partly justified due to its pre-IPO disclosure that piracy is a major risk for the company, but it still should have disclosed a recent government report sharply criticizing it on the matter.
Alibaba triumphs in shareholder lawsuit
E-commerce giant Alibaba (NYSE: BABA) is a master at influencing public opinion through its own hype, but is far less successful with government officials who often view its aggressive ways with more skepticism. With that background in mind, the company’s new courtroom victory in a shareholder lawsuit looks like a refreshing nod of approval from a government source, setting it apart from the usual cheers from fans of the company’s stock. I would probably agree with that view, even though in this case I’m not sure I completely agree with the judge’s decision. Read Full Post…
The following press releases and news reports about China companies were carried on June 23. To view a full article or story, click on the link next to the headline.
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Alibaba (NYSE: BABA) Wins Dismissal of Lawsuit Over Pre-IPO Regulatory Warning (English article)
Baidu (Nasdaq: BIDU) Creates Own Indexes to Paint Picture of China’s Economy (English article)
Fresh Food B2B M-commerce App Meicai Raises $200 Mln Series D Funding (English article)
Tujia Acquires Mayi, Becomes China’s Largest Shared Room Listing Service (Chinese article)
Stock Exchange Queries LeEco (Shenzhen: 300104) on Big Inventory, Accounts Receivable Rises (Chinese article)
Bottom line: The new Shanghai Disneyland may ultimately need to lower prices and control admittance to avoid negative publicity that could hurt its image, forcing analysts to lower some earlier bullish forecasts for the resort.
Shanghai Disney opens with fanfare
I do feel like I’ve written just a tad too much about the new Disney (NYSE: DIS) Resort here in Shanghai, which has just held its carefully scripted grand opening with surprisingly few glitches or negative publicity. But then again, the $5.5 billion investment is likely to be the largest for China this year, and Disney has averaged less than one new park per decade since opening its first Disneyland in Los Angeles in 1955. And based on previous experience, the new Shanghai Disney resort may also land at the center of at least a few minor scandals before it finally finds a more stable long-term footing, which could include a tempering of initial bullish profit forecasts. Read Full Post…
