Hony exits Hong Kong-listed Chaowei Power

According to a term sheet seen by Dow Jones Newswires, the 150 million shares were priced at HK$3.85-4.00, representing a discount of 5.7-9.2% on Monday's closing price. UBS was the sole bookrunner for the deal.

Hony Capital - through its $1.4 billion Hony Capital Fund 2008 - invested $41.06 million for a 20.36% stake in Chaowei Power in March 2010.

Four months after the private equity firm's investment, Chaowei launched an IPO, pricing its shares at HK$2.18 apiece. Based on a price of HK$4.00, the latest sell-down means the private equity firm has nearly doubled its original investment. Hony owned 14.92% of the battery manufacturer prior to the transaction.

Established in 1998, Chaowei Power produces motive batteries for China's fast growing electric bike market. According to the Frost & Sullivan Report, the company accounted for 24.5% of the ebike motive battery market by revenue in 2011, making it the industry leader.

In the first six months of 2012, the company's revenue and profit doubled year-on-year.

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• Topics
• Greater China
• Exits
• Industrials
• Hony Capital
• China
• Exit
• manufacturing