Sequoia supports HK-listed Dongpeng Holdings take-private
Dongpeng Holdings, a Hong Kong-listed ceramic tiles maker, has received a take-private proposal from its management and existing shareholder Sequoia Capital China.
Sequoia and Xinming He, the company's chairman and CEO, are willing to pay HK$4.48 per share for all outstanding H-shares, according to a regulatory filing. This represents a 31.76% premium to the last trading price before the deal was announced. The proposed take-private transaction values Dongpeng at approximately HK$5.64 billion ($724 million).
Max Glory, an investment vehicle controlled by Sequoia's funds, holds 97.55 million shares, or a 7.72% stake, in Dongpeng, while He owns a 31.07% stake.
Founded in 2011, Dongpeng manufactures a wide range of ceramic tile and bathroom products. Sequoia invested $30 million for a 8.3% stake in 2010, AVCJ Records show.
The company raised $88 million in a Hong Kong IPO in 2013. Its revenue totaled RMB3.89 billion ($5.9 million) in 2014, a 15.58% increase from one year before. Its net income improved 66% from RMB340 million to RMB564 million during the same period.
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