Private-equity firm Citic Capital Partners led consortium has agreed to acquire the US-listed Chinese telecoms billing and software group, AsiaInfo-Linkage, for $890m.
The acquisition marks another delisting of a US-listed Chinese firm, driving the trend that gathered steam after accounting scandals at the Chinese firms had US investors worried and led to depressed valuations for Chinese firms with abroad listings.
The deal, which has been in talks since January 2012, would offer AsiaInfo shareholders with $12.00 per share for their stock, representing a 52% premium over the closing price the day prior to receiving the Citic Capital’s take-private proposal in 2012.
AsiaInfo’s acquisition is to be funded through a $330m loan offered by Bank of Taiwan, Cathay United Bank, ICBC International Capital, Maybank Investment Bank and Nomura International.
Additionally, the consortium includes Citic PE and China Broadband Capital Partners, which is a Chinese private-equity firm focused on media and communications investments.
According to reports, many of 400-plus Chinese firms listed in the US have been seeking deals to take flight from the markets since their shares were hit with a wave of short-selling attacks and broader concerns regarding the Chinese economy.