Alternative asset managers are focusing on companies they already hold and on which they also have board positions as they race to complete their due diligence, line up management and arrange buyout groups. Companies from online retailer Jumei International Holding Ltd., in which Sequoia owns a more than 15 percent stake, to online bookmaker 500.com may be the next takeover targets, according to China International Capital Corp.
“Sequoia is a big player in entrepreneurial Chinese companies,” Paul Gillis, a professor at the Guanghua School of Management at China’s Peking University, said by e-mail. “There is a real opportunity right now for U.S. listed Chinese companies to seek higher values on the Chinese exchanges. PE firms are providing the brainpower for these privatization and relisting deals.”..
“I expect the majority of U.S. listed Chinese companies will do privatizations with the intent to relist in China in the next year,” Gillis said. “It’s a classic private equity opportunity.”More in Bloomberg.
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