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Haitong plans $1.5b fund to support Chinese firms going global

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Chinese brokerage Haitong Securities plans to launch a RMB10 billion ($1.5 billion) fund to support domestic companies expanding overseas, Reuters reported, citing a person familiar with the situation. The fund will be managed through Haitong’s private equity unit and the initial fundraise is expected to be RMB3 billion ($460 million).

The fund has support from the Shanghai government and it is likely to offer particular support to Bright Food Group. Bright Food owns 6% of Haitong and has made no secret of its desire to enter new markets through acquisitions. It was most recently linked to a stake in Independent Liquor, a New Zealand beverages group owned by private equity firms Unitas and Pacific Equity Partners.

Earlier this year, Bright Food was reportedly the highest bidder for a 50% stake in Yoplait, which was put on the block by French buyout firm PAI Partners. The company submitted an offer that valued the company at approximately $2.3 billion, but despite this, PAI sold its stake to General Mills, whose bid gave Yoplait an enterprise value of $2.2 billion.

The company's last completed international deal was a $58 million investment in Synlait, a New Zealand milk producer, in July 2010.

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