PAG in partial exit from Haitong Securities

According to IFR Asia, the private equity firm sold about 89 million shares, generating HK$1.16 billion ($150 million). The offering was priced at a discount of up to 3% on Haitong Securities' previous close of HK$13.54. On February 1, the stock reached a record high of HK$13.82.

PAG was the largest of 11 cornerstone investors that covered $580 million of Haitong's $1.7 billion offering. It paid $300 million for 219.7 million shares - a 14.72% stake in the company - financing half the deal through debt. The private equity firm has now reduced its holding to 8.7%, which is worth about HK$1.7 billion at current market prices.

D.E. Shaw was the second largest cornerstone investor in Haitong's IPO, contributing $100 million. This was the company's second attempt to go public in Hong Kong, having abandoned an effort in December 2011 due to poor market conditions and disappointing performances by other Chinese financial firms listing on the bourse.

PAG reached a final close of $2.5 billion on its debut private equity fund last year. Three investments have been disclosed so far. In addition to Haitong, the fund committed $250 million to the management-led privatization of NASDAQ-listed mobile handset retailer Funtalk China Holdings and it completed a $250 million buyout of Shaanxi-based Bicon Pharmaceuticals Holdings.

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• Topics
• Exits
• Financials
• Greater China
• PAG
• Exit
• Sell down
• Financial Services
• China