China Private Equity Investment Holdings Ltd has raised $3.8m from the sale of part of its stake Hong Kong-based Fortel.
The deal to sell 3.5% of Fortel values the online content publishing and distribution platform developer at $72m and China Private Equity’s remaining 33.6% stake at $24.2m. The 37.1% stake was valued at $23.9m back in June 2010. That suggests an overall (realised and unrealised) gain of $4.1m.
China Private Equity’s chief executive Duncan Chui owned 45% of Fortel and that has been increased to 47.8% following China Private Equity’s stake disposal.
In 2009, Fortel made a profit of HK$34m (US$4.6m). It is considering a flotation on the Hong Kong Stock Exchange this year.
China Private Equity recently refined its investing strategy so that it can invest in companies that are operating in China or looking to enter the Chinese market. This was to enable China Private Equity to acquire a 30% stake in Hong Kong-based Enfinium, which provides a global online trading platform. China Private Equity issued 10m shares to Furuya for the Enfinium stake, giving Furuya 13.6% of the Aim-quoted company. If Enfinium makes a post-tax profit of $3.5m or more in 2011 then China Private Equity will issue a further 2m shares to Furuya.
China Private Equity is also investing $2m for a 40% stake in China iEducation Group, which develops digital education content.
At $0.57 a share, China Private Equity is valued at $36.7m. Net asset value was $26.9m at the end of June 2010.
Download the April edition of AIM Journal at http://www.hubinvest.com/AIMPDFApril2011_19.pdf
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