Beijing-based Hony Capital has co-invested in PPTV.com, a China-based video streaming company, in a deal valued at $420 million, according to a statement from Suning.
Hony will invest $170 million and Suning, a home appliance retail chain in China, will invest $250 million to become PPTV's largest shareholder.
PPTV operates an online video distribution platform that provides live streaming and video-on-demand services. It has 340 million users, according to the statement.
“PPTV is a leading enterprise in the internet video industry, having an outstanding team and professional operational ability,” said Hony’s John Zhao, in the statement.. “Hony’s investment will enhance PPTV’s advantage to support its longterm development. It will be like a tiger with wings.”
Hony will invest
Suning aims to expand its online retail presence and its investment “will help accelerate the development and improvement of online retail, and form a unique competitive advantage”, Zhao added.
Hony, which is celebrating its ten-year anniversary, expects to make ten investments this year after a relatively quiet 2012 for the firm, Zhao told Private Equity International in a previous interview.
Hony also continues to test new asset classes. In April, it made its first investment into China’s real estate sector with an RMB 1.8 billion (€215 million; $295 million) investment into Shanghai-listed real estate and construction company Chengtou Holdings, sister publication PERE reported earlier..
In September, it closed a debut mezzanine fund, an RMB 1 billion RMB vehicle that was oversubscribed, PEI reported earlier.
The firm has also begun to raise a small special situations fund in US dollars. The two funds will have synergies with each other and will provide some liquidity to SMEs in China, Zhao said.
Beijing-based Hony Capital is a private equity firm focused on buyouts and commercialisation of state-owned enterprises and providing growth capital to Chinese enterprises. The firm is is a subsidiary of Legend Holding and has $7.1 billion in assets under management, according to PEI’s Research & Analytics division.