Citic Capital Partners is leading a consortium that includes its private equity unit to buy AsiaInfo-Linkage Inc. (Nasdaq: ASIA), a Chinese information technology company, for $890 million.
The purchase price works out to $12 per share in cash. The company's stock was trading at $11.62 on May 13. AsiaInfo’s said that Citic first approached it in January 2011, and the companies announced a definitive agreement on May 13.
Beijing-based AsiaInfo provides software and information technology services to Chinese telecommunications companies.
Citic is making the deal in connection with a consortium that includes some of its affiliates, private equity firm AlpInvest, China Broadband Capital Partners II LP and AsiaInfo co-founder Edward Tian.
Bank of Taiwan, Cathay United Bank Co. Ltd., ICBC International Capital Ltd., Maybank Investment Bank Berhad and Nomura International (Hong Kong) Ltd. are arranging a $330 million debt facility to provide financing for the deal.
Citic is the private equity arm of China-focused alternative investment management company Citic Capital Holdings Ltd., which has more than $4 billion in capital under management.
Citic Capital is owned by China Investment Corporation, China’s sovereign wealth fund; and Citic Group Corp., the largest Chinese conglomerate, through its Citic International Financial Holdings Limited and Citic Pacific Limited subsidiaries; and Qatar Holding LLC.
Davis Polk & Wardwell is Citic’s U.S. legal counsel, while Shearman & Sterling is acted as U.S. legal adviser to AsiaInfo’s special committee. Morgan Stanley is Citic’s financial adviser, and Nomura International and ICBC are co-advisers. Goldman Sachs (Asia) LLC is financial adviser to AsiaInfo’s special committee. Skadden Arps Slate Meagher & Flom LLP is co-founder Tian’s legal counsel, and China Renaissance Holdings Ltd. is his financial adviser. Ropes & Gray represented AlpInvest on the deal.