Hony supports Canadian energy investment platform

According to a statement, Hony and CCEC's majority shareholders - ZhongRong Group and Zhejiang Rongsheng Holding Group - will jointly contribute over C$500 million ($456 million) to form a jointly-owned corporation. It is unknown how much capital each party will put in.

CCEC said it will look for exploration and exploitation opportunities in the light oil and liquids rich natural gas spaces throughout the Western Canadian Sedimentary Basin. The capital injection will support the firm's strategy "of building a highly valued and balanced portfolio through acquisitions and follow up development."

Zhejiang Rongsheng, which invested in CCEC last year, operates various businesses across petrochemical, polyester, spinning, texturing and coal chemicals in China, Europe, and the US. Last year it posted sales of more than C$10 billion.

ZhongRong was established in 1992 as an investment company primarily focused on the real estate sector in China.

Hony oversees approximately $7 billion of assets under management. It closed its fifth US dollar-denominated fund at $2.35 billion in early 2012 in addition to raising RMB10 billion ($1.6 billion) for its second renminbi vehicle.

The private equity firm focuses on the consumer, advanced manufacturing, healthcare and services and energy sectors, as well as cross-border investments. Its most recent cross-border deal was a commitment to start-up Hollywood movie studio.

 

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• Topics
• Greater China
• Industrials
• North America
• China
• Commodities
• Hony Capital
• Outbound investment
• Canada
• energy