Tsinghua, CDIB buy control of PE-backed lighting manufacturer
A consortium of investors including Tsinghua Tongfang, a Shanghai-listed technology manufacturer owned by China Tsinghua University, and CDIB Capital has acquired a 52.28% stake in LED lighting manufacturer Neo-Neon Holdings for HK$900 million ($116 million).
The target company's shareholders include Tsing Capital.
According to a regulatory filing, Neo-Neon will issue 1 billion new shares to THTF Energy-Saving Holdings, an investment entity of Tsinghua Tongfang, at HK$0.90 apiece. The placing price represents a 50% discount to the last close.
Upon completion of the deal, Tsinghua Tongfang will hold 51.56% of Neo-Neon, while CDIB Capital will hold 0.47%. Tsing Capital will see its stake reduced to 4.99% from 10.3% on a diluted basis.
AVCJ Research records show that Tsing Capital invested HK$232 million for a 11.28% stake in Neo-Neon via China Environment Fund III in 2009.
Founded in 1997, Tsinghua Tongfang produces products - such as smart pads, multi-media television, and micro-electronics - for the information technology and environmental energy industries.
The company will use two-thirds of the net proceeds to fund the future development of lighting products in China and expand globally. The remainder will be used for potential acquisitions.
KGI Capital Asia is acting as a financial advisor to Tsinghua Tongfang.
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