CLSA Capital Partners has arranged $85 million in financing for the privatisation of Singapore-listed Midsouth Holdings by Zhong Nan, an investment holding company.
Midsouth manufactures components for air-conditioning ventilation systems and fibre reinforced plastic components such as vehicle parts, doors, windows and industrial fittings. Zhong Han is looking to start manufacturing parts and systems for energy-related projects and to supply plastic products across various industrial sectors.
CLSA made the investment from MezzAsia Capital, a pan-Asian mezzanine fund. The investor consortium also included AXA Private Equity, the private equity arm of the French insurance giant. CMIA Capital Partners, a China-focused private equity firm, provided equity for the deal.
The funding was used to acquire the outstanding shares of Midsouth and will support future growth of the business. It was structured as a combination of a senior secured loan with detachable warrants, CLSA said in a statement.
The company has “greater flexibility to venture into new industries and applications without the need for ongoing approval and oversight from shareholders”, said Stéphane Delatte, managing director of MezzAsia Capital.
CLSA Capital Partners could not be reached for comment.