The following press releases and news reports about China companies were carried on July 7. To view a full article or story, click on the link next to the headline.
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Apple (Nasdaq: AAPL) Drops to Fifth in China’s Mobile Market as Locals Rise (English article)
Huawei Files US Patent Lawsuit Against T-Mobile (Nasdaq: TMUS) (Chinese article)
SAIC, Alibaba (NYSE: BABA) to Mark Chinese Foray Into Connected Cars With SUV (English article)
Canadian Solar (Nasdaq: CSIQ) Sells Solar Power Projects in China (PRNewswire)
China Resources Beer (HKEx: 291) Plans $1.2 Bln Rights Issue to Buy SABMiller’s JV Stake (English article)
Bottom line: A new marriage between Midea and Kuka may get off to a rocky start due to cultural differences, but could ultimately do well and see the formation of a joint venture to sell industrial robots in China.
Midea and Kuka tie the knot
After a tense 2 months, a controversial tie-up between Chinese home appliance maker Midea (Shenzhen: 000333) and German robotics firm Kuka (Frankfurt: KU2) has just taken a major step forward, with the former sharply boosting its stake in the latter. Midea took the $1.3 billion step after providing numerous assurances to Berlin, including guarantees that it didn’t plan to relocate German jobs to China or take over Kuka’s management.
The step forward looks like a big victory for free trade, as it shows that governments like Germany won’t meddle in market-driven M&A and other cross-border tie-ups even when they involve cutting-edge technology. But this new cross-border marriage is just beginning, and I suspect there will be many bumps in the road ahead as this pair from very different cultural backgrounds gets to know each other. Read Full Post…
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: Kingsoft’s write-down in the value of its investments in 21Vianet and Xunlei could auger a sale of its stakes in both companies, following a failed privatization bid for 21Vianet and little hope for a Xunlei recovery.
Kingsoft writes down 21Vianet, Xunlei investments
A week after data center operator 21Vianet (Nasdaq: VNET) became the second US-listed Chinese company to abandon its privatization bid, one of the financial backers that was leading that bid is providing some hints at what led to its actions. That’s my interpretation of the new disclosure from software maker Kingsoft (HKEx: 3888) saying it has written down $125 million related to slumps in the values of its investments in 21Vianet and also in struggling online video downloading site Xunlei (Nasdaq: XNET). Read Full Post…
Bottom line: A potential merger between CICC and China Investment Securities could mark the start of a resurgence for CICC, as it seeks to regain its former glory as China’s premier investment bank.
CICC in rumored merger talks
Former leading investment bank CICC (HKEx: 3908) is making a rare appearance in the headlines, with word that it’s discussing a possible merger with second-tier brokerage China Investment Securities. I haven’t written about CICC for nearly a year since it made a relatively respectable IPO in Hong Kong after several delays and a downsizing. I and others have mostly forgotten about CICC these days, following a period of turmoil that saw most of its top executives leave after it rapidly lost its position as China’s preeminent investment bank. Read Full Post…
The following press releases and news reports about China companies were carried on July 5. To view a full article or story, click on the link next to the headline.
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CICC (HKEx: 3908), China Investment Securities Said to Be in Merger Talks (English article)
Midea (Shenzhen: 000333) Buys Stake in Germany’s Kuka (Frankfurt: KU2) for $1.3 Bln (English article)
Fosun (HKEx: 656), Ant Financial in Strategic Partnership (Chinese article)
Kingsoft (HKEx: 3888) Makes $125 Mln H1 Provision for Losses at Xunlei, 21Vianet (HKEx announcement)
Baidu (Nasdaq: BIDU) Completes Literature Unit Sale to Perfect World, No Price Given (Chinese article)
Bottom line: A rumored Chinese purchase of 80 percent of AC Milan, together with a new Chinese soccer buy in Australia and NBA purchase in the US, show a recent Chinese buying spree of western sports teams continues to gain momentum.
China in 3 new foreign sports team investments
China’s roll into western sports teams continues, led by word that a Chinese group including Baidu’s (Nasdaq: BIDU) chief Robin Li is on the cusp of a deal to buy 80 percent of soccer club AC Milan for 750 million euros. But that group isn’t the only one making soccer headlines, as a Shenzhen businessman has also reportedly bought Australia’s Newcastle United Jets club. And my prediction that someone in China would make a bid for an NBA club in the US is also in the news, with word that a businessman from southern Fujian province has purchased a small stake in the Minnesota Timberwolves. Read Full Post…
The following press releases and news reports about China companies were carried on July 2-4. To view a full article or story, click on the link next to the headline.
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Chinese Group in Final Talks to Buy 80 Pct of AC Milan Soccer Club for 750 Mln Euros (Chinese article)
Qualcomm (Nasdaq: QCOM) Files Second Round of Patent Lawsuits Against Meizu (Chinese article)
Alibaba (NYSE: BABA) to Buy App Store Wandoujia for $200 Mln – Report (Chinese article)
Our subway system beneath the streets of Shanghai became just a tad quieter this week, with the official retirement of passes that have allowed elderly riders to use the metro for free for years. Regular users of our metro will know I’m referring to disappearance of the voice that barks out the words jinglaoka every time a user of one of these free passes enters or exits through the turnstiles of the subway.
That loud voice, presumably aimed at preventing abuse of the cards, officially went quiet this past Sunday, marking the end of an era for elderly people who could enjoy unlimited free rides during non-peak times. The new policy also eliminated free rides for retirees on our city’s bus system. Read Full Post…
Bottom line: AMC is likely to raise its offer for Carmike Cinemas to the $33-$35 range to placate investors who say the original bid price is too low.
AMC to delay Carmike bid vote
Just days after meeting resistance in a bid to privatize his Hong Kong-listed real estate company, billionaire Wang Jianlin is running into similar difficulties in his plans for a similar buyout of US-listed movie theater operator Carmike Cinemas (Nasdaq: CKEC). Wang first bid for Carmike earlier this year, hoping to combine it with his previously purchased AMC Entertainment (NYSE: AMC), the second largest US movie chain operator. But shareholders quickly said the offer price was too low, and now it appears that Wanda and Wang are reconsidering the bid. Read Full Post…
