HONG KONG May 13 A consortium comprising
China's CITIC Capital and Singapore state investor Temasek
Holdings has agreed to buy Asiainfo-Linkage Inc
for about $900 million, joining a growing number of
buyouts of U.S.-listed Chinese companies.
The CITIC Capital-led group agreed to pay $12 per share for
Asiainfo-Linkage, which provides software to telecommunications
companies, including China Mobile, China Unicom
and China Telecom.
The price is 2.8 percent higher than Asiainfo's closing
price of $11.68 on Friday and the same as CITIC Capital's
initial bid in January 2012.
Asiainfo's buyout is another example of private equity firms
teaming up with founders of U.S.-listed Chinese companies to
take them private after a series of accounting scandals dented
investors' faith in such companies.
The biggest buyout so far was the $3.7 billion privatisation
of Focus Media Holding Ltd by a Carlyle Group-led
The CITIC-led consortium, which includes company founder
Edward Tian, is expected to stump up about $670 million in
equity, while the rest of the funding will be through a $330
million debt package, sources told Reuters. The sources declined
to be identified as the information was not public yet.
Asiainfo was not subject to any accounting scandals, yet the
company's shares lost half their value in two years to 2011,
after which CITIC Capital made its original offer last year.
Morgan Stanley acted as lead financial adviser to
CITIC Capital, while Nomura International and ICBC International
Capital Ltd acted as co-advisers to the private equity firm.
China Renaissance Holdings Ltd advised Asiainfo-Linkage's