Hillhouse invests $1.5b in Chinese EV battery maker

Two Hillhouse entities picked up 65.7 million out of the 122 million shares sold in total. It paid RMB161 per share, a 17.8% discount to the July 17 closing price. The private equity firm is subject to a six-month lock-up period. It will become the ninth-largest shareholder in CATL with a 2.27% stake, according to a filing.

As of midday on July 20, CATL was trading at RMB201, giving it a market capitalization of RMB447 billion. The company is the largest trading on Growth Enterprise Market (GEM).

Founded in 2011, CATL listed on GEM in 2018. It recorded a revenue of RMB45.7 billion and a net profit of RMB4.5 billion last year, representing year-on-year growth of 55% and 35% respectively. In February, the company became a supplier for Tesla's Shanghai factory under a two-year contract.

Hillhouse makes a combination of private and public market investments. Recent substantial deals involving A-share listed companies include the purchase of a 15% interest in Gree Electric Appliance, China's leading manufacturer of air conditioners.

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• Topics
• Greater China
• PIPEs
• Industrials
• Technology
• Hillhouse Capital Management
• automobiles
• PIPE