China M&A Week in Review: 30 May – 5 Jun 2016

China M&A Week in Review: 30 May – 5 Jun 2016

China M&A Week in Review is SSCO’s weekly summary of deals and key developments in China related Mergers and Acquisitions. Our emphasis is on cross-border deals.

This Week’s Links:

Outbound M&A and Investment


Billionaire Chen’s HNA to Acquire Stake in Virgin Australia—Bloombergs,30/5/2016 “Billionaire Chen Feng’s HNA Group agreed to purchase a stake in Virgin Australia Holdings Ltd. as the Chinese conglomerate adds to its more than $91 billion of assets worldwide.The owner of Hainan Airlines Co. will buy 13 percent of Virgin Australia for A$159 million ($114 million) and plans to raise that stake to about 20 percent over time.”


China Inc. Steps Up to Support Noble Group as CIC Takes Shares—Bloomberg,3/6/2016 “Noble Group Ltd. has turned in its hour of need to China Inc., with the country’s sovereign wealth fund standing by the embattled commodities trader as it rolls out a rights issue to boost its finances and Chairman Richard Elman plans to step down. The Hong Kong-based company will offer 1 rights share for each existing share at 11 Singapore cents, a 63 percent discount from the close on Thursday.”

Inbound M&A into China


Michael Kors Beats Expectations, Sees Spending Rising—The Wall Street Journal,1/6/2016

“The company said on Wednesday that it acquired Michael Kors Ltd., the exclusive licensee of products in China and other jurisdictions in Asia, for $500 million in cash. The acquisition was approved by independent directors because the entity was owned by Michael Kors.”

Domestic M&A – Notable Deals


Dah Sing closes higher in Hong Kong on agreement to sell insurance unit for

HK$10.6 billion – South China Morning Post, 3/6/2016

“Shares of Dah Sing Financial and Dah Sing Banking both closed sharply higher in Hong Kong on Friday after its corporate group agreed to sell its insurance business for HK$10.6 billion in cash to Chinese conglomerate Fujian Thai Hot Investment…Dah Sing Financial Holdings, climbed 3.3 per cent, or HK$1.65, to end at HK$51.8. Dah Sing Banking Group gained 1.9 per cent, or HK$0.25, to close at HK$13.6.”


Leshi falls 4% on $1.49 billion Le Vision Pictures deal, China Daily, 4/6/2016

“Approval given for financing to fund expansion, $1.5 billion acquisition of Le Vision Pictures Shares in Leshi Internet Information & Technology Corp slid 4.17 percent on Friday, on the first day’s trading after a six-month suspension, after the securities regulator approved a major acquisition by the firm and a refinancing plan.”


About Stenvall Skoeld & Company

Stenvall Skoeld & Company (SSCO) is an M&A advisory firm with global reach on cross-border transactions. We act as financial advisors to buyers and sellers on mergers, acquisitions, divestitures, capital raises and other strategic and financial transactions and investment decisions. We specialize in cross-border transactions involving Asia, China in particular.

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