Carlyle Asia, Yunfeng exit HK-based GDC

The Carlyle Group has exited its interest in Hong Kong business GDC Technologies to Huayi Brothers Media, a spokesman confirmed to Private Equity International. The return information was not disclosed. 

Yunfeng Capital and Mighty Capital also divested their holdings in the business, with the entire deal worth up to $125 million.

Huayi currently has a 12 percent stake in GDC, a digital cinema equipment manufacturer, but will hold as much as 79 percent following the transaction.

The Chinese film production, record label and talent agent business will buy the stake through its Huayi International subsidiary and pay in a mix of cash and shares. About $67 million will be funded through a share issue, while the remainder is an earnout provision linked to profits in the next two financial years.

Carlyle and Yunfeng, the private equity firm led by Alibaba Group chairman Jack Ma, sealed a buyout of 80 percent of the business in October 2011. The business also counts Hong Kong billionaire Li Ka-shing among its shareholders, according to media reports.

The sale, from Carlyle Asia Growth Partners IV LP, which invests across the region, excluding Japan, comes just as the firm closes the fund after about two years in the market.

Earlier this month, Carlyle closed its fourth Asia Pacific fund on $3.9 billion – above its targeted $3.5 billion and more than 50 percent larger than its predecessor fund. The final close of CAP IV brings the firm’s assets under management in Asia funds, including Japan, to $13.6 billion across its buyout, growth, RMB and real estate funds.