China's first industry investment fund, Bohai Industrial
Investment Fund, is expected to make its debut investment 10 months
after inauguration. The target is the Tianjin Pipe (Group)
Cooperation (TPCO), the largest oil line pipe manufacturer in
China.
Recently, a foreign news agency reported that the Bohai
Industrial Investment Fund would acquire less than 20 percent of
TPCO's shares at the price of 1.5 billion Yuan. According to
reliable resources, however, both the proportion and the final
price have not yet been fixed. Details are yet to be
released.
Inaugurated at the end of 2006, the Bohai Industrial Investment
Fund boasts 6.08 billion yuan for its first phase investments. A
company insider told Caijing magazine that the fund has
maintained close contact with TPCO ever since its investment
committee was established in April 2007. "TPCO is the most ideal
investment target in Tianjin. The Bohai Industrial Investment Fund
will take action soon."
A company insider revealed that the Bohai Industrial Investment
Fund would hold the shares for a long time.
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With regard to the deal, authoritative sources pointed out that
local government support is of vital importance to all funds that
intend to purchase shares in local companies. The Bohai Industrial
Investment Fund has played a significant role in the innovation of
Tianjin's financial market. Both the Tianjin Municipal Government
and TPCO hold the fund in high esteem. However, all negotiations
concerning the price and share proportion are conducted on the
principle of fairness.?"The government will not
intervene."
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For more details, please read the full story in Chinese (
http://www.caijing.com.cn/newcn/home/headline/2007-10-31/36030.shtml).
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(China.org.cn November 1, 2007)
