Hony Capital buys $36m stake in Chinasoft International
Hony Capital has agreed to purchase a $36 million stake in Chinasoft International, an IT application developer. The deal will see Hony recommend Chinasoft as an IT services provider to its portfolio companies.
The Chinese private equity firm, which has over $4.4 billion in assets under management and focuses on the construction, healthcare and consumer sectors, will subscribe to 150 shares in Chinasoft, which equates to 10.52% of the company's enlarged share capital, at HK$1.86 per share. The transaction will be made through Keen Insight, a wholly owned subsidiary of Hony Capital.
After the investment was announced, shares Chinasoft soared as much as 27% to HK$2.38, the highest level since September 2010.
Hony counts Lenovo Mobile Telecom Technological, China's leading mobile handset provider, and IT products and services provider Digital China Holdings among its past investments.
The private equity firm is expected to raise $1.5 billion for its second renminbi-denominated fund. It was reported last November that China's National Council for Social Security Fund had committed $452 million to the new vehicle.
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