Tag Archives: HNA Group

MULTINATIONALS: Politicians Wary on China Bids for Terex, Chicago Exchange

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Bottom line: National security concerns are likely to torpedo pending sales of crane maker Terex and the Chicago Stock Exchange to Chinese buyers, while a similar sale of Ingram Micro shouldn’t draw as much scrutiny.

Terex, Chicago Stock Exchange sales draw national security concerns

Just a day after chip maker Fairchild (NYSE: FCS) called off talks to be purchased by a Chinese buyer over concerns that Washington would veto the deal, 2 other similar planned acquisitions of US firms are coming under the microscope. In the more ominous of the new developments, a group of 46 US congressmen have expressed reservations about a deal announced last week that would see a little-known Chinese company buy the Chicago Stock Exchange.

The other development has a single US congressman expressing similar reservations about a deal that would see Chinese construction equipment maker Zoomlion (HKEx: 1157) buy US crane maker Terex (NYSE: TEX). At the same time, yet another major deal that could draw similar national security scrutiny is in the headlines, with word that a company connected to private equity investor HNA Group has offered to pay $6 billion for computer and component distributor Ingram Micro (NYSE: IM). Read Full Post…

News Digest: June 17, 2015

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The following press releases and media reports about Chinese companies were carried on June 17. To view a full article or story, click on the link next to the headline.
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  • Guotai Junan Seeks $4.8 Bln in Biggest China IPO Since 2010 (English article)
  • JD.com (Nasdaq: JD) to Start Russian Shopping Site in Expansion Beyond China (English article)
  • Crowdsourcing Site Zhubajie Lands 2.6 Bln Yuan Series C Funding (English article)
  • Tencent’s (HKEx: 700) WeChat Probed in Taiwan for Potential Illegal Investment (Chinese article)
  • China’s HNA Group Buys 15 Pct of Red Lion Hotels (English article)

LEISURE: Anbang Closes Waldorf Buy, Heats Up Real Estate

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Bottom line: Washington’s approval of the purchase of the Waldorf Astoria hotel by a Chinese insurer indicates a wave of similar real estate buying by Chinese investors will accelerate, resulting in a bubble likely to burst over the next decade.

Anbang closes Waldorf buy

Washington has just sent an important signal that it won’t seek to halt the growing tide of Chinese investment in US real estate, with word that Anbang Insurance has just closed its purchase of New York’s storied Waldorf Astoria hotel for nearly $2 billion. I was quite surprised at how quickly this deal closed, since the amount of money is huge and the deal itself also sparked some controversy over potential national security issues. More precisely, it took just over 4 months to close the purchase of one of the world’s most famous hotels at a record-setting price. Read Full Post…

NY Fund, AsiaInfo Investments Raise Citic’s Global Profile

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Citic Capital invests in New York startup fund

The growing field of big Chinese global investors has gained a new member, with word that a unit of Citic Group, one of the nation’s oldest conglomerates, is taking a stake in a major new fund being set up in New York. Word of that deal comes as Citic Capital wraps up another major deal, as it finally closes its long and difficult plan to buy out New York-listed telecoms software maker AsiaInfo-Linkage (Nasdaq: ASIA). Both deals underscore not only Citic’s own aspirations as a global investor, but also the broader rise of Chinese private equity firms on the world stage as they aim to compete with big western names like KKR and Carlyle. Read Full Post…

News Digest: October 24, 2013

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The following press releases and media reports about Chinese companies were carried on October 24. To view a full article or story, click on the link next to the headline.
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  • Samsung (Seoul: 005930) Apologizes To Chinese Consumers For Faulty Phones (Chinese article)
  • Chinese Lottery Leader 500.com Files for US IPO (English article)
  • HNA Group Completes Acquisition of GE Capital’s TIP Trailer Services Group (Businesswire)
  • Alibaba’s TMall Announces Same-Day Delivery Service (English article)
  • New Oriental (NYSE: EDU) Announces Unaudited Quarterly Results (PRNewswire)
  • Latest calendar for Q3 earnings reports (Earnings calendar)

Fosun Takes China Holiday With Club Med

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Fosun invests in Club Med

A global buying spree by cash-rich Chinese investors has taken a turn onto the tourist map, with word that Fosun International (HKEx: 656) is taking part in a bid to purchase France’s Club Med (Paris: CU), a pioneer in the upscale resort business. I particularly like this deal, as Fosun can actually provide something more than just cash to Club Med, as the European company gets set to embark on an aggressive expansion to bring its brand of exclusive resorts to China. Read Full Post…

HNA Spreads Wings to France 海航收购法国蓝鹰航空48%股权

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Let’s take a break today from all the background noise in cyberspace and trade wars and look instead at an interesting new deal from HNA Group, whose latest equity tie-up in France reflects its ongoing ambition to become one of China’s leading global investors. Despite its ties to the Hainan provincial government, HNA, whose partners include billionaire investor George Soros, has emerged in the last few years as one of China’s most entrepreneurial global investors with a string of interesting deals in strategic areas. Accordingly, this could well become a company to watch as it tries to mimic big global private equity names like Carlyle and TPG, while also building up its own businesses.

Read Full Post…

HNA Goes to Hollywood 海航走向好莱坞

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The huge potential of China’s box office is back in the spotlight again today, with word that US technology company RealD (NYSE: RLD) will install its 3D technology on a major new theater chain with up to 500 screens being set up by a unit of HNA Group, one of China’s more entrepreneurial business groups. (company announcement) The announcement by HNA Vigor Film Investment comes less than 2 weeks after China’s largest movie theater operator, Wanda Group, announced it will buy AMC Entertainment, the second largest US movie theater operator, in a landmark plan that also includes major facility upgrades. (previous post) All this shows how much potential these companies see in China’s movie market, now the world’s second largest, and also underscores their determination to take advantage of a newly relaxed quota for the import of foreign films that now command the big majority of the country’s fast growing box office. Let’s take a look at this latest news, which has HNA Group getting into the movie theater business with a big move that will make it one of China’s top movie theater operators, behind Wanda’s 730 screens in 86 movie theaters. Equally important, the installation of 3D technology in its new theaters means that HNA will be eligible to show films under China’s newly expanded quota for imported foreign movies. After limiting the annual import of foreign films to 20 for many years, China recently raised the figure by allowing in additional 14 movies in high-tech formats like 3D. That could mean a 40 percent increase in box office sales, as foreign films currently dominate a sector that generated more than $2 billion last year and whose sales could top $5 billion by 2015 as more affluent Chinese are willing to pay relatively expensive ticket prices to see big-budget films. The domestic film-making business has also gotten a lift in recent months, with global animation leaders Disney (NYSE: DIS) and DreamWorks Animation (NYSE: DWA) both setting up joint venture animation studios in China earlier this year. (previous post) Look for this trend to continue, with movie theaters quickly multiplying in China’s biggest cities to meet the growing demand from affluent Chinese eager to see a growing number of top-notch films coming into the country. That should play well not only for the theater operators and movie makers, but also technology and equipment makers like RealD and Imax (NYSE: IMAX).

Bottom line: Real ID’s tie-up to install 3D technology in HNA Group’s new theater chain marks the latest step the recent boom for China’s movie industry.

Related postings 相关文章:

◙ Wanda’s AMC Buy: The Show Isn’t Over Yet 万达并购美国AMC影院：表演还未结束

◙ News Corp Makes New Play for China 新闻集团入股博纳影业集团

◙ Disney, Tencent Tie-Up to Animate China 迪斯尼、腾讯合作研发动漫

 

Bona Opens New China Back Door 博纳欲与美国同行合拍电影 中国同好莱坞恋情升温

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The growing new love affair between Hollywood and China is taking yet another step forward, with news that New York-listed movie maker Bona Film (Nasdaq: BONA) is in talks with several major US studios to co-produce films for the China market. (Chinese article) In fact, such co-productions aren’t completely new, and many of the other studios have used them in recent years to circumvent a strict quota system that limits the number of foreign films that can be imported to China each year. But Bona’s plan looks particularly aggressive, presenting a potentially interesting proposition for foreign investors looking to buy into the China film story. According to the reports, Bona is talking with a number of major studios, including 20th Century Fox, Universal, Sony Pictures (Tokyo: 6753) and Paramount (NYSE: VIAb) about co-producing movies for the Chinese market. Furthermore, the company’s chief executive says his ultimate goal is to make 2 such co-productions a year. Such a large number would mark a big opening into China for the foreign studios, which until recently were only allowed to collectively export 20 of their films each year into China, now the world’s second largest movie market. Beijing recently increased the total by saying it would allow another 13 movies into the market each year using high-tech formats like 3D. Still, the appetite and potential for high-quality films in China is clearly capturing Hollywood’s attention, leading to a recent flurry of moves into China by the major studios. One of those moves, in fact, saw 20th Century Fox’s parent News Corp (Nasdaq: NWSA) take a 20 percent stake in Bona Film itself last month (previous post); accordingly, I wouldn’t be surprised if 20th Century Fox ends up signing the first co-production deal with Bona in this new round of tie-up talks. Bona’s talks come as other major studios are making their own new moves into China, amid increasing signs that Beijing wants to open the industry to more outside investment. Disney (NYSE: DIS) and DreamWorks Animation (NYSE: DWA) both announced new animation joint ventures in China earlier this year (previous post); and HNA Group and Wanda Group have both discussed major new moves to open and expand their domestic theater operations to accommodate the expected big influx of Hollywood-quality movies. (previous post) Another name to watch could be Huayi Brothers (Shenzhen: 300027), one of China’s other major privately held film studios with foreign experience, though that company has tended to focus more on co-productions with other Asian firms. Either way, these foreign-focused Chinese studios could make an interesting investment play into the market as it prepares for major expansion, with the potential to perhaps someday rival some of the major US entertainment giants.

Bottom line: Bona Films’ aggressive pursuit of foreign co-productions reflects the recent opening of China’s film industry, which is forging growing ties with Hollywood.

Related postings 相关文章:

◙ News Corp Makes New Play for China 新闻集团入股博纳影业集团

◙ China-Hollywood Lovefest Continues With Latest Deal 小马奔腾携手数字王国 中国与好莱坞恋情继续

◙ Wanda’s AMC Buy: The Show Isn’t Over Yet 万达并购美国AMC影院：表演还未结束

CITIC on Global Buying Hunt 中信集团加入全球收购行列

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CITIC Group, one of China’s oldest private investors, is joining a growing number of Chinese investors looking for bargains being sold off as a result of the global financial crisis, with media reporting the company’s brokerage arm is seeking to buy a major brokerage asset from France’s Credit Agricole (Paris: CAGR). (English article) The deal, which would see CITIC Securities (HKEx: 6030; Shanghai: 600030) buy Credit Agricole’s CLSA brokerage brand, would mark the second major attempt to purchase of a global asset by CITIC this year, following news last month that another of the company’s units, CITIC Capital, was making a bid  for AsiaInfo-Linkage (Nasdaq: ASIA), one of the oldest US-listed Chinese companies. (previous post) In fact, the Credit Agricole talks aren’t completely new, as CITIC was previously in discussions to buy a smaller stake in the CLSA brokerage unit along with another related asset from the French bank, which was trying to raise cash after taking a hit during the global financial crisis. But what’s new is that CITIC is now looking to buy the CLSA brokerage unit outright, rather than just a 19 percent stake that was being discussed earlier. That seems to indicate that Credit Agricole wants to reach a deal soon and is willing to give a good price, as talks have dragged on for a while now. Likewise, the AsiaInfo deal also looks like a relative bargain as the company’s shares have taken a beating over the past year, down more than 50 percent in 2010, amid a broader sell-off for US-listed Chinese stocks following a series of accounting scandals at several major listed players. Both deals look like they would be in the $1 billion range, which looks like a good comfort level for a group like CITIC, which has plenty of cash, including $1.7 billion raised by CITIC Securities in a Hong Kong IPO last year. CITIC is just the latest in a growing field of cash-rich private Chinese investment groups looking for bargains on the global stage in the wake of the global financial crisis, as most suffered little or no damage themselves during the crisis. Earlier this year, Fosun International (HKEx: 565) said it is eying potential investment oportunties in Europe, where many companies are looking to sell off assets as the continent grapples with its ongoing debt crisis. (previous post) Another aggressive player, HNA Group said last fall it has embarked on a global buying spree that has seen it snap up assets in a range of industries, including shipping and hotels, and boasting it has an additional war chest of more than $6 billion for more purchases. (previous post) Look for even more of these deals in the year ahead, probably mostly focused in the $1 billion range or less, as Chinese investors get more aggressive on the global stage.

Bottom line: CITIC is the latest private Chinese investment firm to step up its activity on the global stage, looking for bargains being sold by cash-hungry western firms.

Related postings 相关文章:

◙ Investors to AsiaInfo: Let’s See Some Numbers 投资者对亚信创联并购案减失耐心

◙ Gree, Bright Food, Fosun in New Global Moves 格力电器、光明食品和复星集团全球新动向

◙ HNA: China’s Next Big Global Investor? 海航集团：中国下一个大型全球投资者？

Gree, Bright Food, Fosun in New Global Moves 格力电器、光明食品和复星集团全球新动向

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Overseas expansion was a major theme in the closing days of the first week of the National People’s Congress in Beijing, with top officials from 3 very different companies in the home appliance, food products and investing sectors all discussing ambitious global plans for the year ahead. Gree Electronic Appliance (Shenzhen: 000651), China’s largest maker of air conditioners, detailed ongoing plans to expand in the tough but lucrative US market; while Bright Food (Shanghai: 600597) said it is in talks to buy a French winemaker; and lastly Fosun International (HKEx: 656) said it’s eying investments in a number of overseas markets, especially in Europe where valuations are low as the market confronts its ongoing debt crisis. From my perspective, the Fosun and Bright Food plans both look like smart and interesting moves for reasons I’ll discuss shortly, while the Gree plan looks a bit more questionable and is likely to run into problems. Let’s look quickly at the 3, starting with Gree, whose President Dong Mingzhu, one of China’s most successful female business leaders, said the company has started to build a plant in the US after opening a branch office in California last year. There’s not much else in the report, except for Dong’s belief that strong US infrastructure and investing incentives will offset the market’s higher costs. While such a plan certainly conforms with China’s “go-global” policy, I expect Gree will quickly discover the higher costs and stiff competition are a potent combination that will eventually lead to the failure of this ambitious project. Moving on to Bright Food, Vice President Ge Junjie said the company is in talks to buy a French winemaker, following its deal last year to buy Australia’s Manassen Foods for $382 million. (English article) I really like this latest move, as China is fast becoming a nation of wine drinkers, as younger, more affluent urbanites look for lower-alcohol alternatives to traditional Chinese liquors, most notably the baijiu that is a favorite of many from the older generation. Finally there’s Fosun, whose Chairman Guo Guangchang, one of China’s most successful private investors, said his firm is looking at acquisition targets in Germany and Britain this year, attracted by low valuations of many companies as they struggle with a weak regional economy. Last year the company paid $120 million for 9.5 percent of a Greek company, Folli Follie Group, showing it is serious about investing abroad. (English article) I previously said that another regional investor, HNA Group, was a very entrepreneurial company that could become one of China’s first big global investors without ties to the central government (previous post), and I think that Fosun also fits this description, and could be a player to watch closely in the next 2 years.

Bottom line: Global expansion plans by Bright Food and Fosun International look like strong bets in the year ahead, while a US expansion by Gree Electric looking more problematic.

Related postings 相关文章:

◙ Fosun Pharma Offers Window to China Healthcare Reform

◙ China: A Fickle Global Shopper 中国企业缺乏并购经验

◙ HNA: China’s Next Big Global Investor? 海航集团：中国下一个大型全球投资者？