Hony fully exits Chinasoft International through $170m sale

According to a filing, a Hony investment vehicle sold 335 million shares - or an 18% stake - through a private placement at HK$3.93 apiece, which represents a 10.07% discount to the April 22 closing price. The buyers included unnamed insurance companies, mutual funds and global asset management firms. Yuhong Chen, CEO of the company, became the largest shareholder after the transaction.

Hony initially invested $36 million in Chinasoft in 2011 through Hony Capital Fund 2008, which bought 150 million shares at HK$1.86 apiece. Since the start of this year, Chinasoft shares have gained 84%, riding the wave of mainland Chinese capital that has flooded the Hong Kong market. 

Founded in 2000, the company provides end-to-end software and information services, including outsourcing and IT staff training. It generated RMB4.4 billion ($715 million) in revenue last year, up from RMB3.2 billion in 2013. Its net profit had increased from RMB148 million to RMB200 million during the same period.

Last week, Hony sold $1.26 million worth of shares in CSPC Pharmaceutical to complete its exit from the Hong Kong-listed Chinese drug manufacturer.

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• Topics
• Greater China
• Exits
• Technology
• China
• Exit
• Technology
• Hony Capital
• Sell down