China’s rapidly weakening advertising market may be undermining Focus Media’s (Nasdaq: FMCN) ongoing privatization bid, with word that one of the companies underwriting the buyout may have backed out of the deal. The news, if true, underscores the fact that this kind of privatization is never easy, and that China’s wobbly economy may make future similar buyouts even more difficult. But at the end of the day, I do suspect this privatization bid will probably succeed since many offshore investors are still quite bullish on China. What’s more, Focus Media, despite a recent restructuring, is in the enviable position of being one of China’s leading outdoor advertising services firms.
Tag Archives: Carlyle
7 Days to Privatize, Who’s Next? 7天连锁酒店股东团提出私有化要约
In a theme that is rapidly gaining momentum, yet another US-listed Chinese firm has announced a new privatization bid to capitalize on valuations that have been pushed to rock-bottom levels amid a broader investor confidence crisis. The newest management-led buyout offer from 7 Days Group (NYSE: SVN), the smallest of China’s 3 publicly listed budget hotel operators, follows a string of similar moves that have seen other US-listed Chinese companies, including Shanda Interactive and Focus Media (Nasdaq: FMCN), make similar moves. So perhaps the more interesting question is: who are the most likely companies to launch similar privatization bids, as investors can clearly make some quick money if they can answer this question correctly.
Carlyle, Home Inns Drive Hotel Consolidation 酒店业整合加速：如家快捷和凯雷投资的并购
Consolidation is accelerating the budget hotel space with new acquisitions by industry leader Home Inns (Nasdaq: HMIN) and private equity giant Carlyle (Nasdaq: CG), as China’s top operators look for ways to maintain their growth going amid a slowing market. This growing string of smaller deals is building up to the big story that’s likely to come in the next 2 years, when we could see a Chinese player make a global acquisition or one of the big foreign operators buy up a Chinese brand.
News Digest: July 6, 2012 报摘： 2012年7月6日
The following press releases and media reports about Chinese companies were carried on July 6. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
◙ Apple (Nasdaq: AAPL) to Launch New iPad in China in Late July – Source (English article)
◙ Carlyle Acquires 49 Percent of China Mid-Tier Hotel Chain (English article)
◙ Jingdong Mall, Investors Agree to Delay IPO, Seek New Funding Round (Chinese article)
◙ Best Buy (NYSE: BBY) China Enters Mobile Retail (English article)
◙ Bloomberg Sites Blocked in China Days After Xi Family Wealth Story (English article)
