Carlyle to buy US$137m bond from Haier Electronics
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Shanghai Daily, August 3, 2011
World buyout giant Carlyle Group L.P. has agreed to buy nearly HK$1.07 billion (US$137 million) convertible bond and warrants issued by its strategic partner Haier Electronics Group Co, the Chinese company's parent said today.
The Hong Kong-listed Haier Electronics will issue 40 million units of equity warrants to Carlyle's subsidiary, Hawaii Asia Holdings Limited, which can buy shares in the company at HK$11.21 per share 18 months after the issue takes effect, Qingdao Haier Co said in a statement to Shanghai Stock Exchange.
The five-year bond, which carries a 3 percent interest rate, can be converted into Haier Electronics shares at HK$10.67 each, the statement added.
Hawaii Asia Holdings also has inked a memorandum of understanding to develop strategic cooperation with Haier Electronics, pledging to support the company in terms of evaluating its investment strategies and advising on recruitment and suppliers, according to the statement.
Home appliance maker Qingdao Haier Co owns 50.85 percent of Haier Electronics. Its share price dipped 1.59 percent today to close at 12.42 yuan in Shanghai. Haier Electronics lost 2.32 percent to close at in HK$9.27 in Hong Kong.
In 2010 Haier enjoyed the largest share of the world's white goods market, with 6.1 percent, according to the UK-based Euromonitor International, an independent provider of business intelligence on industries, countries and consumers.
The Washington-based Carlyle operates in areas from corporate private equity, real assets, market strategies to fund-of-funds through its AlpInvest subsidiary. Its 2010 annual report showed Carlyle's total assets had exceeded US$150 billion. The firm has more than 1,300 investment partners in 71 countries.
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