Founder of SAIF-backed NVC Lighting sells a 12% stake
Wu Changjiang, founder and former chairman of NVC Lighting Technology Corp, a Hong Kong-listed lighting company backed by SAIF Partners, has agreed to sell close to two-thirds of his stake to Elec-Tech International (HK), another China-based lighting manufacturer. The move follows a dispute between Wu and NVC’s board and investors, which saw him resign from the company last year.
According to a statement filed with the Hong Kong Stock Exchange, Wu will transfer 372.9 million of his 587.4 million shares to Elec-Tech at HK$2.55 apiece. He will be left witha 6.79% stake in the company.
Elec-Tech separately bought another 260.3 million shares, or 8.24% of NVC. It will become the company's single largest shareholder with approximately 20.05%.
NVC has suffered due to a series of employee strikes and resignations by senior executives. The problems can be traced back to Wu's departure at CEO and chairman in May after investors claimed he was involved in related-party transactions and had allowed corporate governance standards to slip.
Subsequently, Andrew Yan of SAIF Partners, the largest shareholder at the time, was appointed chairman.
In August, the company warned of a substantial profit drop due to rising costs, falling sales and Wu's resignation. Meanwhile, it was suggested that NVC would consider reinstating Wu.
SAIF Partners committed $22 million to NVC in 2006. Two years later, it increased its holding, putting in $46.6 million through a joint investment with Goldman Sachs. Last year, Schneider Electric joined the club, acquiring a 9.2% stake in NVC. The three parties owned 33.36% of the listed company prior to the Elec-Tech transaction.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.