Baker & McKenzie recently advised EQT Greater China II (“EQT”) on its acquisition of 30 percent of the shares in Modern Metal & Precision Holdings Limited (“Modern Metal”) through a new share issue. The Modern Metal co-founders will remain majority owners after the new share issue. The new funds will be used to expand current production and to establish a new plant in China.
Modern Metal is a leading aluminum die casting manufacturer in China. It was founded in 1969 by co-founders Mr. Duen Fung and Mr. C.T. Fung. Modern Metal is a major supplier of highly-engineered aluminum die casting products in the global automotive, climate control and industrial automation markets. Its customers include leading multinational companies in the USA, Europe and Asia. It currently operates two plants in Dongguan and is planning to build a new plant in China. Modern Metal had sales of approximately US$75 million in the financial year ended 31 March 2010.
EQT is one of the leading private equity groups in Northern Europe with around Euro 13 billion in raised capital and has invested in more than 80 companies. EQT Greater China Fund makes control or co-control investments in high-quality market leading, medium sized companies in attractive industries in Asia with a potential for top-line growth.
The Baker & McKenzie team was led by Hong Kong-based PE/M&A partners Cheung Yuk Tong and Tracy Wut. The team had lead responsibility for overall documentation and general transaction management.
Earlier in the year, the Baker & McKenzie team had also advised EQT on the acquisition of a co-controlling stake in a leading discount house-ware retail chain in Hong Kong, Japan Home Centre.
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