CLSA in $20m ‘Chindia’ play

CLSA Capital Partners has bought both Orind Global in China and India and Shanghai Tonya in Hong Kong in November alone.

CLSA Capital Partners has been busy investing ARIA Investment Partners III – an Asian growth fund – in China, as well as India. In November alone, it completed two transactions the most recent of which is a $20 million investment in Orind Global Holdings, a refractories exporter which has a presence in both India and China.

Required for heat insulation and protection, refractories are essential in the manufacturing of iron, steel, cement and glass.

The private equity capital will help Orind fund an acquisition as well as to expand existing plants in India.

Josephine Price, deputy chief executive officer of CLSA Capital Partners said: “This is an interesting Chindia play. We believe that consumables such as refractories are a great way to benefit from the burgeoning demand as well as higher concentration of commodity manufacturing in China and India.”

Prior to investing in Orind, ARIA III committed approximately $25 million in Shanghai Tonya Petrochemical, a Hong Kong GEM listed company. CLSA acquired 175 million shares or 20 percent of the total issued shares of the company via a placement.

Shanghai Tonya Petrochemical is a Chinese asphalt sales and logistics services company with storage capacity aggregating 114,000 tons and looking to expand its network.

Alvin Ho, CLSA Capital Partners managing director and head of China said the demand for asphalt in China was driven by the growth in road construction in
maintenance.

CLSA is entitled to nominate a candidate to be a non-executive director of the company and an alternate director. CLSA can also appoint a non-voting observer to attend the company’s board meetings.