Software outsourcing firm Camelot Information Systems (NYSE: CIS) has quietly raised the value of its management-led buyout offer, as it nears its ultimate goal of going private due to lack of interest from Wall Street investors. Even with the increased offer, Camelot is still just worth just under $100 million, a tiny fraction of what it was once worth when investors were much more bullish on the company and China’s software outsourcing sector in general. The looming de-listing also comes just a week after Pactera (Nasdaq: PACT), one of China’s only other major publicly traded IT outsourcing firms, said a group seeking to buy the company had lowered its bid due to weakening outlook. (previous post) Read Full Post…
Blackstone, Temasek give thumbs down to Pactera, Youku
Two Chinese tech leaders are feeling the effects of fickle western institutional investors, with word that one big name has lowered its buyout offer for IT outsourcing firm Pactera (Nasdaq: PACT) , while another has dumped its sizable stake in video sharing site Youku Tudou (NYSE: YOKU). In the former case, it’s private equity giant Blackstone that’s lowered its offer for Pactera, while in the latter its Singaporean sovereign wealth fund Temasek dumping its Youku Tudou stake. Both cases are due to company specific factors; but they also show that big-name investors may carry a certain level of prestige for companies that attract them, but they also bring a certain level of risk. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 14-16. To view a full article or story, click on the link next to the headline.
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Blackstone-Led Buyout Group Lowers Bid For Pactera (Nasdaq: PACT) (English article)
Suntech (NYSE: STP) Announces Management Change, Appoints New CEO (PRNewswire)
LightInTheBox flirts with IPO price after weak earnings
The latest developments for New York listed e-commerce firm LightInTheBox (NYSE: LITB) and Singapore-listed China Mingzhong Food (Singapore: MINZ) are showing just how fragile a nascent turnaround for battered overseas-listed Chinese stocks could be. Shares of the recently listed LightInTheBox have plunged over the last week following a weak earnings report, bringing them close to their IPO level after an initial surge in their June trading debut. Meantime, Mingzhong shares have plunged even more rapidly, losing half their value after a short seller attack questioning some of the company’s financials. Read Full Post…
One of my well-informed sources tells me that Shenzhen-listed IT outsourcing firm Beyondsoft (Shenzhen: 002649) is weighing a bid for rival Camelot Information Systems (NYSE: CIS), in what would be an interesting twist to the ongoing exodus of Chinese firms from US stock exchanges. If this information is true, it could mean we may start to see some bidding wars among private buyers for the growing number of Chinese firms that are abandoning their New York listings due to low valuations. Read Full Post…
Smartphone chip maker Spreadtrum (Nasdaq: SPRD) has become the latest US-listed Chinese firm to receive a buyout offer, continuing a trend that is making such names an endangered species on New York’s 2 stock exchanges. The process is the result of natural market forces and thus should be allowed to continue without interference, even though it could also cut off an important funding source for some of China’s most dynamic companies. Read Full Post…
More than a month after I predicted that education services provider New Oriental (NYSE: EDU) could become the next US-listed Chinese company to privatize, media are buzzing with comments and other rumors that indicate such a bid could indeed be in progress. I made my remarks in late April after New Oriental reported relatively solid quarterly results that failed to impress US investors who have become wary of many Chinese companies after a series of accounting scandals. (previous post) That lack of investor appreciation has led a growing number of US-listed Chinese companies to launch privatization bids, and I predicted that New Oriental could become one of the next to joint that list. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 23. To view a full article or story, click on the link next to the headline.
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GalaxySecurities (HKEx: 6881) Soars 11 Pct In Debut After $1.1 Bln HK IPO (English article)
Sovereign Funds, China Construction Bank (HKEx: 939) Buy Into Russia’s VTB (English article)
Qihoo 360 (NYSE: QIHU) Partners with Etao to Introduce Shopping Search (English article)
Shanda Games (Nasdaq: GAME) Reports Q1 Unaudited Results (PRNewswire)
Pactera (Nasdaq: PACT) Board Forms Privatization Plan Review Committee (PRNewswire)
Anyone looking to invest in the China IT outsourcing story will be disappointed to learn that Pactera (Nasdaq: PACT), the sector’s biggest publicly listed player, has just announced a plan to privatize at a nice premium to its last share price. If the privatization succeeds, Pactera would join rival Camelot Information Systems (NYSE: CIS), which is engaged in a similar de-listing, removing what were once 2 of China’s most exciting tech companies from the publicly listed realm for international investors. While the Pactera move reflects a broader privatization trend among US-listed Chinese companies, it also reflects the failure of Chinese IT outsourcing firms to realize the big hopes that many once held for them. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 21. To view a full article or story, click on the link next to the headline.
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Goldman Exits China’s ICBC (HKEx: 939), 7 Years And Billions Later (English article)
