Hony Capital invests in Biosensors PIPE

The China-focused firm will become the largest shareholder of the Singapore-listed medical device manufacturer, acquiring a 29.47% stake for about S$283.8m.

China-focused private equity firm Hony Capital has agreed to buy a combined 29.47 percent stake in Singapore-listed medical device manufacturer Biosensors International for about S$283.8 million (€155.6 million; $219.6 million), becoming the company’s largest shareholder.

The firm is acquiring 197.3 million shares of Biosensors from the company’s chairman Yoh-Chie Lu, and 122 million shares from other vendors, according to Biosensors’ statement. The shares will be sold at S$0.8888 per share.

“We see there is tremendous growth potential in the market it serves, particularly in emerging markets like China, as cardiac disease remains the No. 1 cause of death in China,” John Zhao, CEO of Hony Capital, said in the statement.

Based in Singapore, Biosensors develops and manufactures medical devices for interventional cardiology and critical care procedures. It has offices in China, Japan, Indonesia, Switzerland, Netherland and the US.

The investment in Biosensors followed another PIPE transaction earlier this year when Hony Capital agreed to subscribe to an undisclosed number of convertible bonds of Hong Kong-listed department store operator China Golden Development Holdings in February.

Based in Beijing, Hony Capital has more than $3 billion in assets under management across four USD-denominated funds and one RMB fund. The RMB fund raised RMB5 billion (€532.6 million; $751.6 million) in 2008 from state investors such as China’s National Social Security Fund, which committed RMB2 billion to the fund.

Limited partners to its USD funds include Goldman Sachs, property developer Sun Hung Kai, Temasek, CalSTRS, Stanford and Notre Dame endowment funds, Rothschild, Pantheon, Partners Group, Squadron Capital, and Asia Alternatives.

The firm focuses on investments in the sectors of construction materials, construction machinery, pharmaceuticals & healthcare and consumer & retails. Hony Capital is also interested in media & entertainment, financial services and energy & resources.