Morgan Stanley PE Asia exits China Shanshui

MSPE Asia owned 246.7 million shares of China Shanshui Cement, representing 8.8% of the total shares. Since reporting 2010 results on March 25, China Shanshui was on a high, with a 7% hike in share price and 31% year to date. The shares were priced a 3.4% discount to last sale and within 6% of the all time high of HK$7.44.

MSPE Asia first invested $130 million in China Shanshui in 2007. A majority of the assets was used to finance RMB 4 billion of M&A to consolidate and enhance the business - acquiring a total of five assets. After the July 2008 IPO, MSPE Asia owned 26% of the company but three market blocks executed in 2009 (Apr, Jul, Sep), lowered MSPE Asia's holdings down to 1/3 of the original position

Commenting on the deal, Homer Sun, head of MSPE's China business said in a statement: "MSPE has had an outstanding strategic partnership with China Shanshui Cement that has included working together on the RMB 4 billion of roll-up M&A in 2007 and an IPO in 2008. We will, at the company's request, continue to serve on the board of the company."

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• Topics
• Exits
• Greater China
• Morgan Stanley Private Equity Asia