CVC Asia Pacific buys shares in listed Chinese paper co

The manager of the largest pan-Asian private equity fund is to acquire a 30 percent stake for a reported $623 million in China-listed Shandong Chenming Paper Holdings.

CVC Asia Pacific, which last year closed the largest pan-Asian fund ever organised, is set to buy a 30 percent stake of Shenzhen-listed Shandong Chenming Paper Holdings for a reported 5 billion yuan ($623 million; €486 million).
CVC Asia Pacific is to acquire up to 1 billion shares in Chenming at a price not lower than 110 percent of the company’s average closing share price over the last 20 trading days, Chenming said in a statement filed with the Shenzhen securities regulator.
 
CVC will acquire the shares in a private placement, according to a Reuters report. When contacted, a CVC official in Hong Kong declined to comment on the transaction.
 
CVC Asia Pacific last year closed the largest pan-Asian fund to date on $1.975 billion.
 
Chenming is a producer of paper, paper material and board, and has interests in electricity generation, manufacturing of cement, construction material and decoration material. Chenming is a name that resonates beyond China especially in the pulp and paper industry.

In February, Finnish pulp and paper company Metso announced an agreement to acquire the entire share capital of Shanghai Chenming Paper Machinery, a paper machinery manufacturer owned by Shandong Chenming and Shanghai Heavy Machinery.