Private equity groups are scouring US markets for listed Chinese companies, trading at bargain basement prices, that want to go private.
Just 16 take-private deals worth almost $4bn – including Shanda Interactive, Harbin Electric and China Security & Surveillance – have been completed in the past two years, according to figures from Dealogic, despite a huge decline in the value of many Chinese stocks. Only half of these involved private equity backers, with the rest a mixture of corporate takeovers or original owners using their own funds or bank financing.
Dealogic data show a similar number of deals are pending, such as Citic Capital’s move for telecoms billing group AsiaInfo-Linkage, which has now been opened up to other bidders.