China Ming Yang Wind completes PE-backed take-private

Chuanwei Zhang, Ming Yang's founder, chairman and CEO, submitted an offer in November 2015 to buy all outstanding shares in the company for $2.51 apiece. This represented a 13% premium to the previous close and valued the business at approximately $397 million. The offer received board and shareholder approval, and Ming Yang ceased trading on June 24, according to a filing.

The buyer group - which includes funds associated with China Merchants Kunlun Capital, Shanghai Dajun Asset Management and Guangzhou HYAF Fund Management, in addition to Zhang's family - held 43.9% of Ming Yang and these shares were rolled over into the acquisition vehicle. The group also committed $127 million equity, while China Construction Bank provided a RMB700 million ($105.4 million) debt facility.

Ming Yang claims to be the leading wind turbine manufacturer in China, producing turbines with a rated power capacity of between 1.5 megawatts and 3 MW. As of December 2015, it had entered into sales contracts with 69 customers to deliver 7,203 turbines, representing a cumulative wind power output of 11,980.5 MW. Major customers include China's five largest state-owned power producers.

Founded in 2006, Ming Yang received several rounds of funding from strategic and financial investors. Past backers of the company include ICBC International Investment Management, DT Capital Partners, Shenzhen Capital and Merrill Lynch. The company listed in October 2010.

Revenue came to RMB6.79 billion in 2015, up from RMB5.87 billion the previous year. Net profit fell to RMB235.9 million from RMB354.5 million over the same period.

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• Topics
• Greater China
• Buyouts
• Cleantech
• Infrastructure
• China