China-focused Infinity Group invests in US oil assets

The transaction comes after Infinity Cross Border Acquisition Corporation, a NASDAQ-listed acquisition vehicle backed by Infinity, agreed to merge with Glori in a deal worth approximately $185 million.

The acquisition vehicle listed in 2012 with a view to completing a reverse merger with a growth company. In addition to Infinity Group, its backers include Hicks Equity Partners, the private equity firm owned by the family of Thomas O. Hicks.

The merger is expected to close by the end of this month, with the listed entity to be renamed Glori Energy. It will use the capital to buy "domestic active oil-producing assets" that can deploy Glori's proprietary technology for increasing output from mature fields. Infinity's China connections are expected to help the company expand its footprint in Asia.

"This opportunity with Infinity provides Glori with immediate access to the resources necessary to continue to execute on our growth strategy," said Stuart Page, Glori's CEO. "We believe Infinity's relationships with participants in China's oil sector will provide us with opportunities to expand our technology services platform to that region."

According to a seperate statement, the Petro-Hunt deal will be funded with $38 million in cash and $2 million in a 6% convertible promissory note, which may be converted into the common stock of Glori Energy.

"Glori's purchase is just the kind of deal we had in mind when Infinity decided to merge with Glori. We are delighted to see such progress so early on and look forward to other transactions like this in the coming months," said Mark Chess, managing director of Infinity.

Infinity, which has approximately $800 million in assets under management, describes itself as a cross-border private equity fund with strong roots in China. It has 100 portfolio companies and 17 renminbi-denominated joint venture funds throughout China. The firm has made 100 investments and 30 exits, targeting the medical, agricultural, water, energy and high end manufacturing sectors.

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• Topics
• Greater China
• Industrials
• North America
• Infinity Group
• M&A
• resources
• Commodities
• China
• USA