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Abax reaches $364m deal to take Fushi Copperweld private

29 Jun 2012

Hong Kong-based alternative asset manager Abax Global Capital has reached a deal to take Nasdaq-listed Chinese wire maker Fushi Copperweld private, in a transaction valued at $363.8m.

The deal, which will be completed alongside chairman and CEO Li Fu and took 18 months to close, represents the firm’s second take-private transaction following last year’s buyout of Harbin Electric.

The Fushi board approved an offer of $9.50 per share, representing a premium of 21 per cent on the stock’s closing price on Thursday.

Although lower than the initial bid of $11.50 made in 2010, the offer was higher than a revised $9.25 bid submitted in November last year.

The deal values Fushi at $363.8m based on the total number of shares outstanding as of 4 May. Fu, Abax and their affiliates currently own 29.4 per cent of these shares.

Abax 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.

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