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Abax Global completes $363m take-private of Fushi Copperweld

28 Dec 2012

Hong Kong-based private equity investor Abax Global Capital has completed a $363.8m take-private deal for Chinese wire maker Fushi Copperweld.

The deal has taken more than two years to close following an initial $11.50 per share bid made in November 2010, which was revised down to $9.25 per share 12 months later.

Fushi’s board eventually approved a $9.50 per share offer this summer, representing a 21 per cent premium on the stock’s closing price before the offer was made.

Abax already owned about 29 per cent of the company alongside its chairman and co-CEO Li Fu.

The firm and Fu will finance the deal with a mix of debt and equity. Debt financing will be provided by China Development Bank

Fushi Copperweld makes copper-clad bimetallic engineered conductor products for electrical, telecommunications, transportation, utilities and industrial applications.

Revenues for the third quarter increased 35.9 per cent from the previous year to $66.5m.

In October Abax and Morgan Stanley Private Equity Asia were part of a consortium which bid $330m to take Chinese crop nutrient company Yongye.

The consortium, which is led by Yongye chairman and CEO Zishen Wu, offered $6.60 per share of the company’s common stock to be financed through a combination of debt and equity.

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