CLSA makes second investment in Taiwan

CLSA Capital Partners has invested $30m to back the expansion of a fibreglass yarn-maker. Giving the firm an eventual 14 percent stake in Fulltech Fiber Glass, it is the seventh investment from the firm's pan-Asian growth fund.

CLSA Capital Partners, the alternative asset management arm of investment bank CLSA Asia-Pacific Markets, has invested $30 million (€20 million) in Fulltech Fiber Glass, a Taiwanese fibreglass yarn manufacturer, in the form of convertible bonds. A full conversion of the bonds would translate into an equity interest of roughly 14 percent in the company, CLSA said.

The investment was made from ARIA Investment Partners III, a $330 million pan-Asian fund providing growth capital.

Fulltech, listed on the Taiwan Gre Tai Securities Market, enjoys a 6 percent global market share for fiberglass yarn. The company is currently constructing its second furnace as it looks to increase its production capacity.

Miranda Tang, managing director of growth and expansion capital at CLSA Capital Partners said in a statement that Fulltech enjoys a competitive edge in process technology and costing. She added that another attractive aspect of the business was its client base for fiberglass products, both electronic and industrial.

The firm has invested $160 million in seven transactions from ARIA Investment Partners III, a company spokeswoman told PEO. This is the firm’s second investment in Taiwan from ARIA III, following its $20 million investment in Unitech Printed Circuit Board Corporation for a 7 percent stake in 2007.

Other investments from ARIA III include Orind Global, a refractories exporter based in China and India; Shanghai Tonva Petrochemical, a Chinese asphalt sales and logistics services company listed in Hong Kong; Sanghvi Motors, a crane hiring company in India; Haiweidao Aquatic Food, a Chinese processor and distributor of aquatic products; and Luminous Power Technologies, an Indian producer of inverters, UPS, batteries and water purifiers.

CLSA Capital Partners manages assets of more than $2.3 billion across eight funds.