* Adviser has sent documents to Carlyle, EQT, PAG and TPG
* Savera earns more than 80 pct of revenue from China
* PE backed-majority stakes deals rose 83 pct in China in
2013 -TR data
By Stephen Aldred
HONG KONG, March 6 Spain's Savera Group, which
earns most of its revenue in China, is seeking a buyer for
around 70 percent of itself, in a sale valuing the company at up
to $500 million, people familiar with the matter told Reuters.
The maker of tracks used to guide elevators is working with
financial adviser Business Development Asia (BDA) and is
targeting private equity buyers, said the people, who declined
to be identified because the sale is confidential.
BDA has sent sales documents to potential buyers including
the U.S.'s Carlyle Group and TPG Capital Management
, Sweden's EQT and Hong Kong's PAG, the people said.
Savera began as a European-focused company in 1967, but now
earns more than 80 percent of revenue from China, said one of
the people who has seen the sales documents.
Bankers have drawn comparisons with the 2010 sale of Dutch
cylinder maker Hyva, which earned around 70 percent of revenue
from Asia, with the majority from China. Hyva was bought by
private equity firm Unitas Capital and NWS Holdings for around
$700 million, Reuters previously reported.
Savera's sale would be the latest in a series of deals where
suitors have had the opportunity to buy controlling stakes in
businesses either based in China or with significant exposure to
the world's second-biggest economy.
The future of many such businesses is now largely reliant on
Chinese growth, and private equity firms and corporate buyers
are seeking opportunities to leverage on European technology and
combine it with Chinese demand, according to bankers,
Private equity investment in China is still largely focused
on buying small stakes in growing companies heading for an
initial public offering, according to industry executives.
However, the shutdown of China's capital markets for over a
year starting in late 2012 and a difficult financing environment
for small and mid-sized enterprises led to an 83 percent
increase in majority stakes acquisitions in 2013, Thomson
Reuters data showed.
While that is starting from a low base - total deal volume
was $1.4 billion - companies have also increased in size after
years of sustained economic growth in China, which is further
attracting private equity attention.
Savera has estimated earnings before interest, tax,
depreciation and amortisation (EBITDA) of around $60 million,
and the business could be sold at over eight times that value,
or around $500 million, the people said.
The first round of bidding is due at the end of March, the
Savera and BDA did not respond to requests for comment.
Carlyle, PAG and an external spokesman for TPG declined to
comment. EQT did not respond immediately to requests for