Chinese investment company Good Resources Holdings is planning to launch a $5 billion global merger and acquisition fund in partnership with the Bank of China (Hong Kong – BOCHK).
Good Resources signed a memorandum of understanding (MoU) last week with BOCHK to set up the BOCHK and Good Resources Global Merger and Acquisition Fund, the investment firm said.
Good Resources will hold 51 percent, while BOCHK will, through BOCHK Asset Management, hold 49 percent of the fund.
The fund aims to take a controlling stakes in companies in emerging industry sectors around the world and to introduce them to the Chinese market. These include finance and investment, clean energy, biopharmaceuticals and life sciences, bulk commodity investment and internet finance.
BOCHK is actively exploring overseas direct investments as it changes its business model, the Good Resources statement said. The bank will provide financing for fund investments.
A spokesperson at Good Resources said the MoU “merely indicates the preliminary intention of the parties to initiate an investigation on the joint establishment of the M&A fund”.
Good Resources Holdings Limited, formerly Good Fellow Resources Holdings Limited, operates in two segments: investment and financial services, and distribution and trading.
Its subsidiaries include Jet United Investment, Gold Rising, Golden Wayford, King Partner Holdings, Acelead and Up Precious Global Investment.
BOCHK Asset Management had audited assets of more than HK$2 trillion ($258 billion; €228 billion) at the end of December 2014.