Oriental Fortune to buy stake in Chinese auto parts maker
Oriental Fortune Capital (OFC) has agreed to acquire Chinese auto parts maker Changzhou Guangyang Holding Group in order to gain a controlling stake in its listed subsidiary.
Changzhou Guangyang, which owns 29.61% of Changzhou NRB Corporation, said in an announcement that all three of its shareholders will sell their stakes to OFC for RMB1.2 billion ($172.6 million) in cash. The sellers include Shangnan Cheng, currently the chairman of Changzhou Guangyang, who 90% of the company. The remaining 10% is held by the chairman and CFO of NRB and an executive at Changzhou Guangyang.
Founded in 1994, NRB Corporation is based in Jiangsu province and is one of the leading domestic suppliers of automotive needle roller bearings, which are used to reduce friction on rotating surfaces. It also manufactures other types of bearings used in vehicle transmissions, clutches, and axles.
Customers include FAW Group, Dongfeng Motor Corporation, SAIC Motor, Changan Automobile, and China National Heavy Duty Truck Group. The company also has foreign clients such as ZF Friedrichshafen, Eaton Corporation, Aisin Seiki, and Getrag. The latter is the world's largest supplier of transmission systems for passenger cars and commercial vehicles.
Oriental Fortune Capital, was founded in 2006 and manages 42 funds with assets totaling more than RMB20 billion. It focuses on establishing specialized funds that invest in small and medium-sized companies in technology, media and telecom (TMT), green technology, new materials, advanced manufacturing technology, healthcare, and entertainment and consumption.
As of July, the firm held positions in over 380 companies including Sinovel Wind Group, Yunda Express, and Sinoenergy Corporation. It has achieved 85 exits, of which 41 were IPOs.
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