Hony Capital
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Native name | 弘毅投资 |
|---|---|
| subsidiary | |
| Headquarters | Beijing, China |
| Website |
www |
Hony Capital is a Chinese private equity firm, owned by Legend Holdings. Legend Holdings provided Hony, a pioneer in China's private equity industry, with its start-up capital. Hony has about US$7 billion under management. According to Hony, its core strategy is to invest in large state-owned enterprises and restructure them to increase profits. Hony also invests in overseas consumer brands in order to create value by expanding their presence in China.
Investments
In 2008, Hony assisted Zoomlion Heavy Industry Science & Technology purchase Italian equipment manufacturer Compagnia Italiana Forme Acciaio.[1]
PizzaExpress
Through its subsidiary Hony Capital, Legend acquired PizzaExpress for US$1.54 billion from private equity fund Cinven in 2014.[2] Hony plans to open hundreds of new PizzaExpress restaurants in China and India. Hony claims it can help PizzaExpress create more value in China using its extensive experience and network in its home market. Hony paid with US$ billion in debt with the remaining amount in equity. JP Morgan acted as Hony's adviser for this transaction.[1][3]
STX Entertainment
Hony worked with American buyout firm TPG Capital in 2014 to invest about US$1 billion in a new Hollywood movie studio, STX Entertainment, to make films for worldwide distribution.[1] STX is run by film producer Robert Simonds. The studio plants to produce movies with budgets of $10 million to $80 million. STX says it will release as many as 15 films per year by 2017.
CPSC Pharmaceutical
Through firms it controls, Hony Capital sold off about US1.26 billion in stock in CSPC Pharmaceutical in April 2015 to take advantage of rising share prices. Hony completely divested itself of CSPC Pharmaceutical equity. The shares were sold at prices ranging from HK$7.03 TO HK$7.15 each.[4]
Santos
In November 2015, Hony agreed to increase its minority stake in the Australian oil and gas company Santos for A$500 million. According to regulatory filings, Honey will purchase 75.53 million shares at A$6.8 per share. Santos will use the money to payoff debt and increase its cash balance. Hony paid roughly a 15% premium over market prices and agreed not to divest its shares for at least 12 months. Hony increased its equity in Santos from 1.4% to 7.9% via this transaction.[5]
Clients
Investors in Hony's private equity funds include numerous American and Canadian pension funds, the Bill & Melinda Gates Foundation, Goldman Sachs, and China's national social insurance fund.[1]
Leadership
John Zhao
Hony's CEO is John Zhao. Zhao also serves as a vice president at Legend Holdings.[6]
External links
References
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