SIG Asia backs Country Style Cooking take-private

CSC said in a regulatory filing that Hong Li, the company's co-founder and chairwoman, Xingqiang Zhang, also a co-founder and CEO, and SIG Asia would pay $5.23 per share for all outstanding American Depository Shares. This represents an 18.9% premium to the last closing price before the bid was announced on August 14.

The transaction is subject to various conditions, including approval from two thirds of all shareholders participating in a vote on the buyout proposal. The bidding consortium already holds about 68.9% of the outstanding shares. They will finance the take-private through a combination of debt provided by China Merchants Bank and equity.

SIG Asia first backed CSC in 2007, jointly committing $13 million with Sequoia Capital. The company went public in the US in 2010, raising $82.5 million. As of April 2015, SIG Asia and Sequoia each held an 11.1% stake in the business, with Li and Zhang owning 41.5%.

CSC is a quick service restaurant chain specializing in Sichuan cuisine. It has grown from nine outlets in 2008 to 337 as of year-end 2014, most of which are located in Chongqing municipality and Sichuan province. All restaurants are directly operated and there were plans to add 60 more over the course of 2015.

Revenue reached RMB1.5 billion ($235.7 million) in 2014, up from RMB1.4 billion the previous year, with the addition of 55 new restaurants. Net income fell to RMB38 million, from RMB39.6 million, over the same period.

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• Topics
• Greater China
• Buyouts
• Consumer
• Susquehanna Asia Investment
• China
• buyout
• Consumer