Jul 10, 2010

Carlyle buys 11.3% in Charoen Pokphand

Global private equity firm The Carlyle Group has agreed to acquire 2.27 billion convertible preference shares, and is entitled to additional convertible preference shares in certain circumstances worth US$175 million in C.P. Pokphand Co Ltd (CPP), one of China largest livestock and aqua feed producers, from its holding company Thailand's biggest agribusiness Charoen Pokphand Group (CP Group).
In a press statement yesterday, Carlyle's unit, Carlyle Asia Partners III L.P., a US$2.55 billion pan-Asian investment fund, will seize 324 million options each carrying the right to acquire one convertible preference share in CPP at HK$0.6 per share.   
In return, Carlyle will control 11.3% of CPP, assuming Carlyle does not receive further shares or exercise its options.
CP Group is the single largest shareholder of CPP. The investment is subject to certain conditions and is expected to close by July 22, 2010.
CP Group has managed some overseas investments in 10 different countries such as Indonesia, Malaysia, Bangladesh, Cambodia, Myanmar, China, Singapore, Turkey, India, and Vietnam.
In Indonesia, CP Group controls 55.45% indirectly stakes in PT Charoen Pokphand Indonesia Tbk (CPIN) via PT Central Agromina.
CP Group aims to use part of the proceeds from this transaction to prepay before the end of 2010 worth US$150 million of the intercompany debt of approximately US$288 million which is outstanding to CPP. UBS AG acted as financial advisor to CP Group.

Disclosure: No position at the stock mentioned above.

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2 comments:

Anonymous said...

My friend and I did a video presentation on CP Group. Here's the link if you are interested: http://www.youtube.com/watch?v=UsI36Fq_sW0

Insider Stories said...

Hi...thanks you for your kind to send me the link. It is very useful...

Regards