Carlyle to sell $290M stake in Hong Kong's Haier Electronics -IFR

By VCPOST Staff Reporter

Jan 17, 2014 02:43 PM EST

American private equity firm Carlyle Group is aiming to raise $290 million by divesting a stake in Hong Kong home appliance manufacturer Haier Electronics Group Ltd, according to IFR, a Thomson Reuters publication. The report cited a term sheet of the said deal, wrote Reuters.

Carlyle is selling 100 million shares in the Chinese firm at HK$22 to HK22.50 apiece. IFR said this range represents around 10% discount to the closing price on Friday, the report noted.

Since July, the Haier Electronics stock has doubled and closed up 8.4% on Friday. This is its level since 1999, the report stated.

In 2011, Carlyle bought a 9% holding in Haier Electronics for $137 million, with an option to pour in a further $57 million via warrants and convertible bonds. Based on the report, the US private equity firm has a 90-day lock-up period on the residual shares held under the deals, the report said.

Goldman Sachs Group is the sole bookrunner in the said transaction, Reuters reported.

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