China Private Equity acquires stakes in four Chinese businesses

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china chinese flagAIM-listed China Private Equity (CPE) has agreed to acquire stakes in four companies, which hold interests in four Chinese businesses from affiliates of Hong Kong-based firm Adamas Asset Management.

As a result of the deal, which constitutes a reverse takeover under AIM rules, CPE will change its name to Adamas Finance Asia.

CPE will issue over 1.44bn shares at a price of six US cents per share totalling around $86.4m to Elypsis, which is a subsidiary of Adamas’ affiliate.

In addition, Elypsis will receive warrants to subscribe for 722.7m shares valued at six US cents apiece exerciseable between one and six years of the deal.

In July last year CPE and Adamas agreed on a seven-year $20m joint investment programme.

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