Bottom line: IDG’s new investment in a French soccer club and related joint venture providing soccer training and consulting in China looks like a savvy move to monetize growing demand for sports-related services.
IDG brings French soccer to China
Corporate China’s recent love affair with sports shows no signs of easing as 2016 winds down, with word of a new investment that will see IDG Capital form a joint venture to bring European-caliber soccer training to China. This particular deal was first reported back in August, but it seems a formal agreement has just been signed between IDG, one of the most successful foreign venture capital firms in China, and France’s Lyon Group. 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)
The following press releases and news reports about China companies were carried on May 12. To view a full article or story, click on the link next to the headline.
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PPTV Posts Farewell Microblog Message, Website Remains Active (Chinese article)
Canadian Solar (Nasdaq: CSIQ) Reports Q1 Results, Raises Annual Revenue Guidance (PRNewswire)
Wanda Group Reconsiders De-Listing Property Unit: Sources (English article)
LeEco (Shenzhen: 300104) Joins Forces with Twitter for Global Brand Expansion (Businesswire)
Bottom line: Wanda Group’s newly announced 3 billion euro Paris theme park is the latest in a string of its massive new investments, many of which are likely to collapse or get sharply scaled back due to lack of resources.
Chinese billionaire Wang Jianlin to builld Paris theme park
Billionaire real estate tycoon Wang Jianlin is growing fond of the “b” word these days, with yet another announcement of a multibillion-dollar investment. This time the Wanda Group chief is announcing plans for a $3.3 billion theme park in Paris that would rival the existing nearby resort owned by Disney (NYSE: DIS), which just happens to be revving up to launch its own first theme park on Wanda’s home turf in China.
If I sound just a little skeptical, it’s because I’m growing increasingly suspicious that Wang has become addicted to making big announcements that may never get completed. This particular deal comes less than 2 months after Wang said he would buy Hollywood film studio Legendary Entertainment for $3.5 billion. (previous post) Many are also guessing that Wang may bid aggressively for a strategic stake worth $1 billion or more in Hollywood major Paramount Pictures, which announced just last week it is looking for such a partner. (previous post) Read Full Post…
Bottom line: Suning’s move into sports is aimed at providing content for its PPTV online video service, but is also the latest in a string of wide-ranging investments that reflect a company with an identity crisis.
Suning invests in soccer
Sports teams are becoming flavor of the day for Chinese firms with entertainment aspirations, with word that retailing giant Suning (Shenzhen: 002024) has joined the bandwagon via a new investment in a local soccer club. The company’s latest deal will see it invest 523 million yuan ($80 million) in the Jiangsu Sainty Football Club, which like many other professional Chinese sports teams is struggling financially.
Suning’s interest in soccer is probably related to its 2013 purchase of PPTV, a relatively large player in China’s crowded online video space. The Suning-PPTV tie-up left many people puzzled at thee time of that announcement, since the 2 companies have little in common. But Suning has been aggressively promoting the service in its trademark consumer electronics stores, and in August it announced a plan to invest 1 billion yuan into a campaign to sell smart TVs equipped with PPTV’s online video service. Read Full Post…
The following press releases and media reports about Chinese companies were carried on July 4-6. To view a full article or story, click on the link next to the headline.
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Ant Financial Raises 13 Bln Yuan in First Funding, Valued at 180 Bln Yuan (Chinese article)
Alibaba-backed (NYSE: BABA) Meizu Sells 8.9 Mln Smartphones in H1, Up 540 Pct (Chinese article)
Bottom line: Dianping’s bigger-than-expected fund-raising underscores its popularity among investors, and could pressure it to make an IPO worth $1 billion or more this year to capitalize on positive market sentiment.
Dianping closes $850 mln funding
China’s online group buying space could be closer to getting its first IPO, with word that Dianping, one of the industry’s 2 leaders, has just raised a whopping $850 million in its fifth funding round. The massive funding has actually been in the works since late last year, but kept growing as more investors clamored for a piece of this hot company. The move sends the latest signal that Dianping may be eying an IPO later this year that could raise up to $1 billion or more.
Word of the funding comes as a more advanced IPO plan has gone missing from smaller rival 55Tuan, which was hoping to become China’s first publicly listed group buying site. 55Tuan made a public filing for a New York IPO back in January, and a later filing indicated it planned to sell its shares and begin trading on February 25. But that date has come and gone with no listing, and there’s still no word on the reason for the delays more than 2 weeks later. Read Full Post…
Bottom line: Wanda chief Wang Jianlin could purchase a controlling stake in MGM as he looks to take over a Hollywood studio, while his Wanda Dalian property IPO will get a tepid reception but perform well over the longer term.
Wanda’s Wang Jianlin eyes Lions Gate, MGM
Property magnate Wang Jianlin is used to getting what he wants, but 2 new headlines indicate his Wanda Group may have to settle for compromise in a pair of its latest forays, one involving a Hong Kong IPO and the other involving his desire to purchase a major Hollywood studio. The former headline has Wang reportedly scaling back plans for a mega IPO in Hong Kong for Dalian Wanda, his group’s flagship property arm. The second and more intriguing news item has him seeking to buy a controlling stake in a major Hollywood studio, with Lions Gate (NYSE: LGF) and MGM mentioned as 2 possible candidates. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 3. To view a full article or story, click on the link next to the headline.
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Wanda Group In Talks to Buy Lions Gate (NYSE: LGF), MGM in Hollywood Push (English article)
21Vianet (Nasdaq: VNET) Gets $296 Mln From Kingsoft, Xiaomi and Temasek (Globe Newswire)
Wal-Mart (NYSE: WMT) Cuts Another 250 China Jobs, Shuts Dalian Office (English article)
Two major new global investments are highlighting a recent trend that has Chinese buyers moving beyond their traditional comfort zones of resources and manufacturing and into other less familiar areas like real estate and sports clubs. The first case will see domestic insurance company Anbang Insurance buy New York’s landmark Waldorf Astoria hotel for a supercharged price of nearly $2 billion. The second deal has media reporting that Wang Jianlin, founder of real estate giant Wanda Group, is preparing to buy a stake in Spanish soccer club Atletico de Madrid. Read Full Post…
