Bohai Industry Investment Fund, China's first locally-invested private equity (PE) fund, announced Friday it has invested 1.5 billion yuan (200 million U.S. dollars) in a state-owned steel pipe producer in the northern city of Tianjin.
The investment, made in the Tianjin Pipe (Group) Corporation, was the fund's first transaction since it was established upon approval by the State Council in December 2005, at the Binhai District of Tianjin, which is spearheading China's financial reform.
"It (the investment) will help the firm ease long-term dependence on bank loans, standardize its financial network, and upgrade its capital structure," said Meng Hao, director for the international finance center at the Tianjin University of Finance and Economics.
The steel pipe producer, also based in Binhai, is China's largest seamless steel pipe producer, with its products exported to 72 countries and regions. It plans to go public in the first half of next year.
Ou Wei, president of the fund management company, said: "The transaction marks the beginning of stronger alliances between Chinese PE funds with industry leaders."
He refused to reveal the amount of equity he gets in the company.
PE fund, a major investment channel along with bank loans and IPOs, is mainly for companies with high growth potentials before they are listed in stocks.
Source:Xinhua
|
Comment
Tell A Friend
Print Format
Save Article