HNA IN TALKS TO BUY VALUE PARTNERS STAKE
Firms aim to reach deal within next few weeks, say sources
CHINESE conglomerate HNA Group Co is in talks to purchase a stake in Value Partners Group Ltd, according to people familiar with the matter, in what would be at least its fourth investment in an asset manager in half a year.
HNA was in discussions to buy at least part of chairman Cheah Cheng Hye’s holding in Value Partners, which he helped found in 1993, said the people. It might and exclusions would likely lead to increased smuggling across China’s porous southern border, while some imports from major producers might be shipped through third-party countries.
The government had also excluded about 190 smaller countries and regions from the penalties, potentially diluting their impact, said analysts. These include some of China’s closest trading then seek to increase its stake further, according to the people.
A transaction could value the company, one of Asia’s largest independent asset managers by market capitalisation, at more than US$2 billion (RM8.62 billion), said another person.
Shares of Value Partners rose 8.6 per cent to HK$7.85 (RM4.34) in afternoon trading yesterday, headed for the biggest gain in more than a year, before suspended in the noon.
The parties aimed to reach a deal within the next few weeks, according to the people. No final agreements had been signed, partners such as the Philippines and Pakistan, both smaller sugar producers.
“Of course, it will support the domestic industry for a short time,” said a trader. “(But) the global raw sugar market just needs to drop a little below US$0.15 (RM0.65) to make it profitable to import into China.”
Global raw sugar prices were at US$0.17 per pound on Friday.
China, which imports about and there was no certainty the talks would result in a transaction, said the people.
Value Partners, which had expressed ambitions of becoming the Asian equivalent of Fidelity Investments, had about US$15 billion of assets under management at the end of last month, according to a filing last week. “Value Partners has a strong brand presence in Hong Kong,” said Linus Yip, chief strategist at First Shanghai Securities Ltd yesterday. “It would be a good fit for HNA as it seeks to build up a global network.” Bloomberg
It would be a good fit for HNA as it seeks to build up a global network.
three million tonnes of sugar a year, allows 1.94 million tonnes of imports at a tariff of 15 per cent as part of its commitment to the World Trade Organisation.
Imports beyond this attract a 50 per cent levy. Yesterday’s ruling would add an extra 45 per cent duty to these imports in the current fiscal year, said China’s Commerce Ministry in a statement, taking the total to 95 per cent. Reuters
China’s move to impose hefty penalties on sugar imports is expected to inflict a blow on top growers such as Thailand over the short term.