Hony makes partial exit from Zoomlion via buyback

The transaction facilitates a partial exit for the Chinese GP. According to a filing, a vehicle held by Zoomlion's management will acquire the interest from Hony-owned Good Excel Group.

"Hony has been a financial and strategic investor in Zoomlion. It's a normal practice for a fund to sell back shares to the management team, which also reflects our high degree of responsibility to the company and all shareholders," according to a Hony spokesperson. "We're optimistic about Zoomlion's further growth."

Hony first invested in Zoomion in 2006. Following the transaction, Hony's stake in the company will fall to 6.79% from the current 8.89%.

In 2008, Zoomlion, supported by Hony, Goldman Sachs and Mandarin Capital Partners, bought a 60% stake in an Italian concrete pump manufacturer CompagniaItalianaFormeAcciaio (CIFA) for EUR163 million ($215 million). Hony committed EUR108 million to the Chinese company's overseas acquisition. The PE investors subsequently fully exited the Zoomlion CIFA subsidiary to the parent company.

Listed in Shanghai and Hong Kong, Zoomlion's net profit fell to RMB889 million in the third quarter this year from RMB1.34 billion for the same period last year.

In August, Hony acquired a 20% stake in Chinese farm machinery maker Chery Heavy Industry for RMB696 million. The investment was part of the $340 million joint acquisition with Zoomlion, with the two companies taking a combined 80% stake in Chery.

Hony has approximately $7 billion in assets under management. The firm focuses on the consumer, advanced manufacturing, healthcare and services and energy sectors, as well as cross-border investments. Domestically, it invests predominantly in Chinese state-owned enterprises (SOEs), having committed RMB14.6 billion in 27 SOE transactions over the last 11 years.

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• Topics
• Greater China
• Exits
• Industrials
• China
• Hony Capital
• Exit
• manufacturing
• Buyback