Tag Archives: Hongda

BUYOUTS: Wanda’s Offer, eLong’s Exit, Yongle’s Backdoor

Bottom line: Dalian Wanda’s de-listing plan from Hong Kong is likely to succeed, while eLong could re-list in China and become the travel services provider for WeChat following its New York privatization.

Dalian Wanda joins homeward migration

A trio of new headlines are part of the recent homeward migration of offshore-listed Chinese companies, led by a highly anticipated $4.4 billion offer to privatize property giant Dalian Wanda (HKEx: 3699). Also making news is faded online travel agent eLong (Nasdaq: LONG), whose shareholders have just approved a privatization that will soon end its 12-year-old listing in New York. Finally there’s film production house Yongle Film and Television, which would have been a strong New York IPO candidate in a earlier era but is now in the process of making a backdoor listing in Shenzhen. Read Full Post…

IPOs: Focus Media Tries Again on Tough Road Back to China

Bottom line: Focus Media’s latest backdoor listing plan could stand a 50-50 chance of success, and should come as a warning of the difficulties that may face many other US-listed Chinese firms hoping to privatize and re-list in China.

Focus Media in new backdoor listing plan

You have to admire the persistence of Focus Media, the outdoor advertising specialist that’s trying to blaze a new homecoming trail for US-listed Chinese firms trying to privatize and re-list in China to get higher valuations. More than 2 years after leaving the Nasdaq and one failed re-listing attempt in Shenzhen, Focus is trying again with a new plan for a backdoor listing via a Shenzhen-listed shell company called Hedy Holdings (Shenzhen: 002027).

I’m actually being just slightly facetious in admiring Focus for its persistence, since it really has very few other options in this case. Big investors including US private equity giant Carlyle put up billions of dollars to help Focus de-list in 2013, and now they’re simply looking to recoup their investments and hopefully make some profits by re-listing the company at a higher valuation in China. Read Full Post…

IPOs: Focus Media Changes Course, Renaissance Eyes Buyouts

Bottom line: Focus Media will re-list with a high valuation on a new enterprise-style board set to launch in Shanghai next year, while China Renaissance’s new fund to help US-listed firms privatize will attract strong investor interest.

Focus Media changes IPO re-listing plan

A couple of items are in the news involving the recent buyout wave for US-listed Chinese companies, which are rapidly abandoning New York in search of higher valuations in their home market. In an abrupt and somewhat surprising shift, Focus Media, one of the first companies in this homecoming wave, is reportedly abandoning its original plan for Shanghai.

The second item has China Renaissance, a well-respected domestic private equity firm, preparing to raise a major new fund that will help to finance privatizations of Chinese firms from New York. This particular deal looks significant, since many of the nearly 3 dozens firms to announce privatization plans this year could soon need new funding if previous commitments collapse due to recent volatility in China’s domestic stock markets. Read Full Post…

BUYOUTS: Momo Gets Offer, Focus Media Gets More Headaches

Bottom line: Momo’s plan to privatize just 6 months after its IPO could set a new record, while Focus Media’s latest delay in its China re-listing plan should serve as a warning for others considering similar backdoor listings.

Momo unveils de-listing plan

The privatization story for US-listed Chinese companies has gained yet another member, with word that social networking app operator Momo (Nasdaq: MOMO) has become the latest name to receive a management-led buyout offer. The offer comes just 6 months after Momo made its trading debut in New York, and if it succeeds Momo could win the new record for a Chinese company with the shortest life as a US-listed company.

It’s worth noting that Momo’s announcement is the only one we’ve seen over the last 24 hours, which perhaps marks a slowdown from the 3 companies that made similar announcements over the long Chinese holiday weekend. (previous post) Many of the firms that are trying to de-list are eying re-listings at home in China, where their shares might be more appreciated by local investors. Read Full Post…

News Digest: June 24, 2015

The following press releases and media reports about Chinese companies were carried on June 25. To view a full article or story, click on the link next to the headline.
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  • Alibaba (NYSE: BABA) Revives Koubei to Take Fight With Tencent to Food (English article)
  • LeTV (Shenzhen: 300104) in Spotlight Over Sales Figures (English article)
  • Momo (Nasdaq: MOMO) Announces Receipt of “Going Private” Proposal (GlobeNewswire)
  • KKR Bets on China Professional Education With Tarena (NYSE: TEDU) Investment (English article)
  • Hongda (Shenzhen: 002211) Chairman Quits Amid Probe, 165 Mln Shares Frozen (Chinese article)

FUND RAISING: Billions in China Deals Churn Through Fund-Raising System

Bottom line: More than $20 billion in new fund-raising deals by China companies outside the country reflects the huge amount of global money now chasing Chinese investments, lured by the nation’s soaring stock markets.

Billions flood into Chinese companies

I was so surprised by the number of major new China-related deals churning through the fund-raising system that I decided to do some math, which showed that 5 deals in the headlines today were worth a staggering total of $21 billion. Those deals involved a wide range of topics, led by a new $9 billion privatization bid for software security specialist Qihoo 360 (NYSE: QIHU), the largest such plan to date among a wave of Chinese firms de-listing from New York.

That deal was followed in size by another similar one from Focus Media, whose $7.4 billion plan to re-list in Shanghai following its own New York privatization has hit an unexpected hurdle with an investigation of the shell company that is hosting the backdoor listing. The there’s a hefty $3.5 billion fund-raising plan by leading brokerage Citic Securities (HKEx: 6030; Shanghai:006030), which has attracted 2 of Singapore’s leading investors as it prepares to issue new shares in Hong Kong. Read Full Post…

News Digest: June 3, 2015

The following press releases and media reports about Chinese companies were carried on June 3. To view a full article or story, click on the link next to the headline.
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  • Focus Media To Inject Assets To Hongda (Shenzhen: 002211) For Up To 45.7 Bln Yuan (Chinese article)
  • Sina (Nasdaq: SINA) Announces Agreement with CEO for US$456 Mln Cash Investment (PRNewswire)
  • Taomee (NYSE: TAOM) Receives “Going Private” Proposal at $3.588 Per ADS (PRNewswire)
  • Wanda Cinema Line (Shenzhen: 002739) Buys Australian Cinema Chain Hoyts (English article)
  • Kunlun Tech (Shenzhen: 300418) To Buy Finnish Game Maker Supercell – Source (English article)

IPOs: Focus Media Eyes Shenzhen Backdoor With Hongda

Bottom line: Focus Media could complete its backdoor listing in Shenzhen within the next month, kicking off a new wave of similar migrations by formerly US-listed Chinese firms looking for higher valuations from local investors.

Focus Media to list in Shenzhen via Hongda

Faded outdoor advertising specialist Focus Media is inching towards its goal of becoming China’s first formerly New York-traded firm to re-list in its home market, with reports that it has selected a Shenzhen-listed company to make a backdoor IPO. This particular migration has been in the works for more than a year now, and could end soon with this backdoor IPO that would see Focus take over the public listing of Hongda Building Materials (Shenzhen: 002211). Read Full Post…