HU AN CABLE Holdings is a relatively new listing on the Singapore bourse, having made its trading debut in February this year.
Investor awareness of Hu An Cable is picking up of late, especially after the company announced on Sept 20 it had obtained the last of all the necessary approvals to list its shares as TDRs in Taiwan.
Taiwanese investors would be interested in Hu An Cable as it is one of 20 qualified cables suppliers to the two national power grid companies in China.
Hu An Cable is a play on the business potential arising from the mainland’s massive upgrading of its power infrastructure – as well as the future of the renewable energy sector.
This could well be what a global equity investment group has in mind when it took an interest in the company.
Hu An Cable said on Friday night that SEAVI Advent has approached a substantial shareholder, Yeung Wai Ying, who is deputy chairman and a non-executive director of Hu An Cable, to sell it a 5% stake in the company.
Mr Yeung, 41, a Hong Kong national, is the largest shareholder of Hu An Cable. He is a fulltime investor who invests in various promising enterprises in the PRC and had made a capital injection of S$39.7 million into Hu An before its IPO.
His wholly-owned vehicle, Goka Limited, currently owns 161.7 million shares, or 27.5%, of Hu An Cable.
SEAVI Advent is the Asian affiliate of Advent International Corporation, a global private equity investment group that has raised more than US$26 billion in cumulative capital and invested in over 500 companies in 39 countries.
Since 1984, SEAVI Advent has participated in the growth of many successful Asian companies, including Venture Corporation Ltd and Yangzijiang Shipbuilding.
Hu An Cable, whose first half 2010 revenue of RMB1,062.3 million more than doubled that of 1H2009 and net profit up 46.8% year-on-year to RMB55.8 million.
Mr Yeung informed the Company that the terms of the sale are still being negotiated between the parties and there is no assurance that a sale will be concluded.
Other notable shareholders include Dr Ng Cher Yew, executive chairman of Oceanus Group, who owns 10.2 m shares, or 1.7%, of Hu An, as reflected in the 2009 annual report.
Boutique fund 2G Capital owns a similar stake.
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