Mazda to raise $2 billion in share issue, loans: sources

TOKYO (Reuters) – Japan‘s Mazda Motor Corp plans to raise $2.1 billion to shore up its finances and invest in a new plant in Mexico, financial sources said on Tuesday — a bigger-than-expected fund raising that sent its shares tumbling 13 percent.
The loss-making automaker aims to raise 100 billion yen ($1.3 billion) through a public share offering and 70 billion yen through subordinated loans from banks, two sources with knowledge of the matter said.
Those loans would be provided by Sumitomo Mitsui Financial Group , the state-backed Development Bank of Japan and other banks, local media reported earlier.
Mazda said in a statement that no official decisions had been made.
Battered by a strong yen, the nation’s No.5 automaker is set to post its fourth straight annual net loss in the financial year to March. This month it predicted red ink of 100 billion yen, much worse than an earlier estimate of a 19 billion yen loss.
Mazda, which makes the Mazda2 subcompact and the Mazda3 compact car, is the most exposed among Japanese automakers to currency swings, building about 70 percent of its vehicles in Japan and exporting 90 percent of those last year.
Shares in Mazda fell 13 percent to 140 yen, and it was the most actively traded stock by volume.
“It was sudden and I think share reaction of this size is to be expected for such a large surprising fund-raising,” said Kenichi Hirano, operating officer at Tachibana Securities.
The Hiroshima-based automaker has announced several plans to strengthen its overseas production bases and reduce its reliance on exports.
In addition to plans to build a car factory in Mexico next year, it is considering a joint venture with Russian car maker Sollers to produce Mazda cars in Vladivostok.
Mazda CEO Takashi Yamanouchi said last week the car maker is in talks over project-based tie-ups but is not seeking a capital alliance.
($1 = 79.4700 Japanese yen)
(Additional reporting by Taro Fuse, Mayumi Negishi and Mari Saito; Editing by Edwina Gibbs)
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HONG KONG, February 20 (Reuters) – News and developments in Asia private equity from Reuters News for Lunar New Year and the week ending Feb. 17.
FEBRUARY 17
CARLYLE GROUP has begun the process of selling its over $300 million stake in Taiwan’s Ta Chong Bank Ltd, sources said, as it joins other private equity firms in looking to exit the island’s low-margin financial sector.
MMI INTERNATIONAL, a technology company owned by private equity fund KKR & Co LP, will price its $300 million five-year bond at 8 percent in New York, the bottom end of price guidance, after receiving strong support from U.S. investors, according to a source familiar with the matter.
AUSTRALIAN SURFWEAR company Billabong International rebuffed a $820 million private equity bid from TPG Capital , announcing plans to sell a stake in its Nixon watch brand and close up to 150 stores, sending its shares up by more than 50 percent.
CHINA HAS launched a 50 billion yuan ($7.93 billion) fund in Shanghai to aid overseas acquisitions by Chinese companies as part of efforts to promote international use of the yuan and build the commercial hub into a global financial center.
HANA FINANCIAL Group said that it had reached a deal with the labour union of Korea Exchange Bank (KEB) which had threatened to strike over possible job losses following Hana’s acquisition of KEB.
FEBRUARY 16
WINS INVESTMENT, the fund arm of Chinese property developer Gemdale, says it plans to double funds under management to take advantage of a government clampdown on property financing that could see smaller developers starved of funds.
L CAPITAL Asia, the private equity arm of the world’s biggest luxury goods group LVMH Moët Hennessy Louis Vuitton SA , could begin raising a new fund of more than $1 billion this year, as competition from Western brands creates opportunities to invest in Chinese retailers, its top executive said.
CANADA PENSION Plan Investment Board, which manages the country’s second largest pension fund, has hired former Goldman Sachs banker Mark Machin to head its Asia-Pacific business, according to a source close to the matter.
FEBRUARY 15
L CAPITAL has bought the 8 percent stake held by Wolfensohn Capital Partners in unlisted Indian ethnic wear chain Fabindia, two sources with direct knowledge of the matter said.
SOUTH KOREA’S National Pension Service (NPS), the world’s No.4 largest pension fund, plans to invest around $300 million in a real estate opportunity fund led by Blackstone Group , an NPS official said, amid the fund’s efforts to step up its investments in real estate assets.
U.S PRIVATE equity fund Norwest Venture Partners has invested $15 million in Manthan Systems, an unlisted Indian software products company, for a minority stake, the Indian company said on Wednesday.
WANT WANT China Holdings, the buyer of private equity fund MBK Partners’ Taiwan cable TV unit, will have to give more information to the island’s broadcast regulator concerning its media operations, the latest delay in the $2.4 billion deal.
JAPANESE PRIVATE equity secondary fund Ant Capital Partners said it closed its third Japanese secondaries fund at the end of December 2011 raising $140 million, attracting commitments from 15 Japanese institutional investors.
SOUTH KOREA’S SK Group is in talks to take over U.S. oil and gas company Chaparral Energy, a company 36 percent owned by CCMP, according to a source familiar with the matter.
FEBRUARY 14
TALKS BETWEEN Yahoo Inc and China’s Alibaba Group over the U.S. Internet giant’s Asian assets have hit an impasse, throwing their plans for a $17 billion tax-free asset swap into question, according to sources briefed on the situation.
CARLYLE SAID it would sell Talaris, a provider of cash-counting equipment, to Japan’s Glory Ltd for 650 million pounds ($1 billion), twice the value of its original investment.
INDONESIA WILL not implement a planned regulation to limit ownership in domestic banks, since it does not want to scare away potential foreign investors from the sale of state-owned Bank Mutiara, the state deposit agency (LPS) said.
FIDELITY GROWTH Partners, the private equity arm of Fidelity Worldwide Investment, along with existing investors have invested 2 billion rupees ($40.6 million) in Aptuit Laurus Pvt Ltd, an unlisted Indian pharma company.
EXCLUSIVE-AN Abu Dhabi sovereign wealth fund is exploring the sale of its $1.3 billion stake in Malaysian lender RHB Capital Bhd six months after buying the shares, sources familiar with the matter told Reuters, and has engaged in early talks with Japan’s Sumitomo Mitsui Banking Corp (SMBC).
FEBRUARY 13
U.S.-BASED private asset management firm Rohatyn Group said on Monday that it has agreed to acquire 60 percent of CapAsia, the private equity arm of Malaysia’s CIMB Group Holdings Bhd .
FEBRUARY 10
INDIA’S RELIANCE Communications reported its 10th straight quarter of declining profit as interest costs soared, with investors betting on a sale of the No. 2 mobile operator’s tower business to pare its heavy debt load.http://tourism9.com/    http://vkins.com/

Car loans coast down low-rate lane during 2012

Asia Private Equity Weekly News, January 16, 2011

HONG KONG, December 26 (Reuters) – News and
developments in Asia private equity from Reuters News for the
holiday period, and the week ending Jan. 13.
JANUARY 13
TPG Capital LP is willing to invest about $1
billion in Japan’s Olympus Corp in a joint deal with
Sony Corp or another suitor circling the scandal-hit
company, a person familiar with TPG’s thinking said.
INVESTORS HAVE approved a year-long extension of a $4.7
billion property megafund from Morgan Stanley, a company
spokesman told Reuters on Friday.
JANUARY 12
HONY CAPITAL, one of China’s most successful private equity
funds, said on Thursday that it had raised nearly $4 billion
from investors, defying the increasingly tight fundraising
climate.
THE SALE of Indian developer DLF Ltd’s luxury hotel
chain, Amanresorts International, has stalled due to
lower-than-expected bids by shortlisted companies, two sources
with direct knowledge of the matter said.
JANUARY 11
ALIBABA GROUP has reduced the size of its debut
loan to $3 billion, three sources told Reuters.
LUNAR CAPITAL, a China-focused private equity fund, will pay
close to $100 million to buy a controlling stake in China’s
Yeehoo Group Ltd, a baby products maker, a source familiar with
the matter told Reuters.
AUSTRALIA’S BRAMBLES Ltd, the world’s top pallet
supplier, received first offers from private equity groups for
its U.S. document management business valued at more than $2
billion, three sources said.
JANUARY 10
JAPANESE STATE-sponsored fund, Innovation Network of Japan,
said its investment in overseas acquisitions by Japanese
companies is likely to increase this year, helped by a stronger
yen and an increase in asset sales abroad.
MALAYSIA-BASED private equity firm Navis Capital Partners
said it has completed the sale of its Dunkin’ Donuts and Au Bon
Pain businesses in Thailand to Sub Sri TPC Pcl for 1.32
billion baht ($41.56 million).
AUSTRALIAN PRIVATE equity firm Pacific Equity Partners
baulked at sweetening its A$711 million ($730 million) offer for
cleaning services company Spotless Group Ltd, raising
the prospect it could walk away from the bid.
KKR & Co has made a buyout approach to Australian
underwear manufacturer Pacific Brands Ltd that a
newspaper said could be worth $614 million, boosting its shares
20 percent and sparking talk other firms could attract similar
offers.
INDIA’S ASK Property Investment Advisors is close to raising
10 billion rupees ($192 million) for a fund that will invest in
property projects in five Indian cities, Chief Executive Amit
Bhagat said.
AMSTERDAM-BASED law firm Loyens & Loeff said it is opening a
Hong Kong office to capitalise on increased Asian interest in
investing in Benelux countries.
JANUARY 5
BLACKSTONE GROUP LP will conclude fundraising for its
latest buyout fund in January, raising just over $16 billion,
three people familiar with the matter said.
NEWQUEST CAPITAL Partners said it plans to invest up to $200
million in the next 12-18 months to acquire private equity
portfolios in Asia.
JANUARY 4
JAPAN’S RECRUIT Co has paid $410 million to buy two
temporary staffing agencies in the U.S. and Europe from buyout
firm Cerberus Capital Management, the human resources
company said, as it seeks to expand overseas.
JANUARY 3
TEMASEK HOLDINGS Pte Ltd said it has set up a new
subsidiary called Pavilion Capital Pte Ltd that will invest
primarily in privately owned firms in North Asia.
RED FORT Capital, an India-focussed real estate private
equity firm, is set to raise a $500 million fund that will
invest in commercial and residential assets, two sources told
Reuters.
DECEMBER 30
NATURAL GAS fuel firm Clean Energy Fuels Corp,
whose investors include Chesapeake Energy Corp,
Temasek’s Seatown Holdings and Asia private equity fund RRJ
Capital, said it has received $150 million from investors
including Boone Pickens.
DECEMBER 29
CHINESE WIRE maker Fushi Copperweld Inc said it
received a revised proposal from co-chief executive Li Fu, Abax
Global Capital and TPG Growth Asia Inc to take the company
private for $9.50 per share in cash.
DEALTALK – TOUGH IPO conditions in India are driving
secondary deals between private equity investors.
CHINA NO longer wants foreign-funded automobile factories or
polysilicon plants, but would welcome overseas investment in
hospitals and financial leasing firms, according to updated
inward investment guidelines.
ALIBABA has hired a Washington lobbying firm in a sign that
the Chinese e-commerce company would be willing to make a bid
for all of Yahoo Inc in the event that talks to unwind
their Asian partnership fail.
DECEMBER 28
AN AFFILIATE of U.S. private equity giant Blackstone has
bought a company that owns a special economic zone in India from
the country’s top listed developer DLF Ltd and its partner for
8.1 billion rupees ($153 million).
JAPANESE PRIVATE equity firm Unison Capital said it will buy
Asahi Tec, a maker of iron castings used in automobiles
that is majority owned by Belgian private equity investor RHJ
International SA, for $310 million excluding debt.
BANKRUPT JAPANESE consumer lender Takefuji Corp
gained a new lifeline when financial group J Trust Co Ltd
said it would invest $325 million after a previous
agreement with struggling A&P Financial of South Korea fell
through.
NOMURA HOLDINGS Inc said it would become the first
Japanese financial group to be allowed to make private equity
investments in China and would invest in a private equity fund
managed by Jiu You Equity Investment Management LLP.
DECEMBER 26
CARLYLE GROUP said it has named Kazuhiro Yamada as
co-head of its Japanese operations, replacing Masao Hirano, who
will resign from the private equity firm.
DECEMBER 23
DEALTALK-ASIA’S private equity firms face a shrinking pool
of bank loans as European lenders pull back from the region,
crimping both investments and re-financings for buyout-backed
companies and adding to the list of challenges the industry will
meet in 2012.
AUSTRALIAN PAPER manufacturer PaperlinX Ltd said it
has received an incomplete and conditional proposal from an
unnamed private equity firm for its business, while it predicted
a loss for the first half as European markets weakened.
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China investment wave unlikely to swamp EU

VENICE (Reuters) – The sign in a boutique selling glass hand-crafted on the Venetian island of Murano betrays an uncertain grasp of English. But the owner is very sure who is to blame for the tough times confronting the 700-year-old local glassmaking industry.
“Everything in this shop is not made in China,” it proclaims. A few doors away, imported Murano lookalikes sell for much less. To the untrained eye, they appear identical.
With Europe drowning in debt and flirting with recession, China’s influence can only rise further. Euro zone governments would love Beijing to plough more of its $3.2 trillion in foreign-exchange reserves into their bonds.
China is also likely to chip in with a loan to the International Monetary Fund to provide a financing backstop in case Italy and Spain are shut out of the bond markets.
Last week’s $3.5 billion acquisition by China Three Gorges Corp of the Portuguese government’s stake in utility EDP is also a sign of things to come.
But, despite Chinese leaders’ expressing interest in diversifying the country’s overseas asset base away from government paper, analysts do not expect a sea change in China’s traditionally cautious approach to expanding in Western markets. Africa and Asia are likely to remain China’s top targets for now.
“There are going to be opportunities, but we’re not going to see China buying up Europe,” said Thilo Hanemann, research director at the Rhodium Group, an investment advisory and strategic planning firm in New York.
TREADING SOFTLY
There are many reasons for the wariness.
Lengthy delays in obtaining the approval of regulators in Beijing put Chinese companies at a disadvantage in mergers and acquisitions when the seller wants a quick deal. Companies lack the management skills to integrate overseas acquisitions. And, perhaps most importantly, prospects are much brighter at home than they are in Europe.
“If you compare the rates of growth in China and in Europe, are you sensible buying into a brand that’s seen its best years of growth? said Edward Radcliffe, a partner in Shanghai with Vermillion, an M&A advisory boutique that focuses on cross-border China deals.
Still, he said some larger Chinese groups, both state-owned and private, had started to explore opportunities in Europe and the United States.
The 27-member European Union is China’s biggest export market. But foreign direct investment has badly lagged, totaling $8 billion by the EU’s reckoning or $12 billion on China’s count – less than 0.2 percent of total FDI in the EU, according to Rhodium.
The firm has kept its own tally since 2003, but its total of $15 billion through mid-2011, though greater than the official data, is still small.
Hanemann said he was sure 2012 would see deals in Europe in technology and consumer products to enable Chinese firms to climb the value ladder and build their domestic market share.
“Ultimately, Chinese companies have to become true multinationals, like Japanese and Korean firms before them,” he said. “Over the longer term, there’s no reason to believe that China is going to take a different path.”
But he was sceptical whether most Chinese companies would be able to seize the opportunities that were likely to crop up in the coming year. To do so, they would have to manage public perceptions in Europe and obtain quick regulatory approval at home.
“There are a lot of deals that the Chinese cannot take on. If the Chinese government sees a company making a bid for troubled assets that risks provoking a political backlash in Europe, I think they’d step in to make sure there’s no embarrassment for the Chinese side.”
POLITICAL OVERLAY
The failure of Chinese firms to buy Saab, the Swedish car maker that was declared bankrupt last week, was a telling example of the difficulties facing Chinese investors, Hanemann said.
But the picture is not black and white. After all, Volvo, another Swedish car maker, was successfully acquired by a Chinese rival from Ford Motor Co in 2010.
Christine Lambert-Goue, managing director in Beijing at Invest Securities China, said companies were not looking mainly for outright acquisitions but for brands, patents and technology that would bolster their position at home.
“Companies are only ready to pay for assets from Europe that will enable them to gain market share in China,” she said.
Investment in Europe will take off eventually, but a deteriorating political climate represents an obstacle in the short term, said Jonathan Holslag of the Brussels Institute of Contemporary China Studies.
The EU, like the United States, is talking tough about Chinese “state capitalism” and is crafting a more assertive trade policy to counter what it sees as a playing field tilted against foreign companies.
For its part, Beijing smells protectionism in the air in response to its growing economic clout.
“The European Union is disappointed with the reluctance of Beijing to open its economy further, whereas Beijing complains about Europe being too reluctant to share its knowledge or to allow Chinese investors to expand their presence in important sectors like infrastructure,” Holslag said.
And if Europe fails to snap out of its economic malaise, the risk is that a super-competitive China will be made a scapegoat.
“The more governments are confronted with high unemployment figures, the more we will start to see China as a challenger rather than as a saviour,” Holslag said.

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China Unlikely to Ride to Europe’s Rescue Soon

By ALAN WHEATLEY | REUTERS

Published: December 26, 2011

VENICE — The sign in a boutique selling glass hand-crafted on the Venetian island of Murano betrays an uncertain grasp of English. But the owner is very sure who is to blame for the tough times confronting the 700-year-old local glassmaking industry.
“Everything in this shop is not made in China,” the sign proclaims. A few doors away, imported Murano look-alikes sell for much less. To the untrained eye, they appear identical.
With Europe drowning in debt and flirting with recession, China’s influence can only rise more. Euro zone governments would love Beijing to plow more of its $3.2 trillion in foreign-exchange reserves into their bonds.
China is also likely to chip in with a loan to the International Monetary Fund to provide a financing backstop in case Italy and Spain are shut out of the bond markets.
The $3.5 billion acquisition last week by China Three Gorges of the Portuguese government’s stake in the utility Energias de Portugal is also a sign of things to come. Financiers turn instinctively to fast-growing China as they try to flush out buyers for assets going on the block as European governments, banks and companies pay down debt.
But despite expressions of interest by Chinese leaders in diversifying the country’s overseas asset base away from government paper, analysts do not expect a sea change in China’s traditionally cautious approach to expanding in Western markets. Africa and Asia are likely to remain China’s top targets for now.
“There are going to be opportunities, but we’re not going to see China buying up Europe,” said Thilo Hanemann, research director at the Rhodium Group, an investment advisory and strategic planning firm in New York.
There are many reasons for the wariness. Lengthy delays in obtaining the approval of regulators in Beijing put Chinese companies at a disadvantage in mergers and acquisitions when the seller wants a quick deal. Chinese companies may lack the management skills to integrate overseas acquisitions. And perhaps most important, their prospects are much brighter at home than they are in Europe.
“If you compare the rates of growth in China and in Europe, are you sensible buying into a brand that’s seen its best years of growth?” said Edward Radcliffe, a partner in Shanghai with Vermillion, a merger and acquisition advisory boutique that focuses on cross-border China deals.
Still, he said that some larger Chinese groups, both state-owned and private, had started to explore opportunities in Europe and the United States.
The 27-member European Union is China’s biggest export market.
But foreign direct investment in the European Union by China has badly lagged, totaling $8 billion by the Union’s reckoning or $12 billion on China’s count — less than 0.2 percent of total foreign direct investment in the Union, according to Rhodium. The firm has kept its own tally since 2003, but its total of $15 billion through mid-2011, though greater than the official data, is still small.
Mr. Hanemann said he was sure 2012 would see deals in Europe in technology and consumer products to enable Chinese companies to climb the value ladder and build their domestic market share. “Ultimately, Chinese companies have to become true multinationals, like Japanese and Korean firms before them,” he said. “Over the longer term, there’s no reason to believe that China is going to take a different path.”
But he was skeptical about whether most Chinese companies would be able to seize the opportunities that were likely to crop up in the coming year. To do so, they would have to manage public perceptions in Europe and obtain quick regulatory approval at home.
“There are a lot of deals that the Chinese cannot take on,” Mr. Hanemann said. “If the Chinese government sees a company making a bid for troubled assets that risks provoking a political backlash in Europe, I think they’d step in to make sure there’s no embarrassment for the Chinese side.”
The failure of Chinese companies to buy Saab, the Swedish carmaker that was declared bankrupt last week, was a telling example of the difficulties facing Chinese investors, Mr. Hanemann said.
But the picture is not black and white. After all, Volvo, another Swedish carmaker, was acquired by a Chinese company from Ford Motor in 2010.
Christine Lambert-Goué, managing director in Beijing at Invest Securities China, said that Chinese companies were not looking mainly for outright acquisitions but for brands, patents and technology that would bolster their positions at home.
“Companies are only ready to pay for assets from Europe that will enable them to gain market share in China,” she said.
Investment in Europe will take off eventually, but a deteriorating political climate represents an obstacle in the short term, said Jonathan Holslag of the Brussels Institute of Contemporary China Studies.
The European Union, like the United States, is talking tough about Chinese “state capitalism” and is devising a more assertive trade policy to counter what it sees as a playing field tilted against foreign companies.
For its part, Beijing smells protectionism in response to its growing economic clout.
“The European Union is disappointed with the reluctance of Beijing to open its economy further, whereas Beijing complains about Europe being too reluctant to share its knowledge or to allow Chinese investors to expand their presence in important sectors like infrastructure,” Mr. Holslag said.
And if Europe fails to snap out of its economic malaise, the risk is that a super-competitive China will be made a scapegoat.
“The more governments are confronted with high unemployment figures, the more we will start to see China as a challenger rather than as a savior,” Mr. Holslag said.
Alan Wheatley is a Reuters correspondent.
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Skyscanner Travel Trends Report 2012 Now Available

EDINBURGH, Scotland–(BUSINESS WIRE)– In its new 2012 Travel Trends Report, Skyscanner has revealed that Estonia, Russia, Iraq and Cape Verde are all emerging destinations likely to see a significant rise in interest from UK tourists over the coming year.
The flight comparison website, which has over 15 million users a month, analysed its vast data on user flight searches to produce the report on global travel trends. Overall, Spain remains the most popular choice for British holidaymakers for a fourth consecutive year, however in the ‘Destinations of The Future’ section of the report, Skyscanner highlights a number of more exotic locations.
Where are we going?
Estonia is the highest climbing destination with a search increase of 90% year on year. This is largely attributed to the increased publicity the country has received following Tallinn’s stint as a European Capital of Culture in 2011, however other Eastern European destinations have also seen a significant rise in popularity. A 32% increase in interest for Russia suggests that the world’s biggest country will get a bigger share of tourists over the coming year. With major sporting events looming (Winter Olympics in 2014, and the World Cup Football in 2018), Russia’s profile as a tourist destination is set to rise substantially.
While Estonia, which adopted the Euro in 2011, and also Greece and Italy appear to be performing well in the global battle for tourists, other Euro destinations have not fared so well; Portugal, Ireland, Germany and Slovakia all saw minimal rises in searches, well below the Skyscanner site average.
Following years of conflict, Iraq looks to be gaining more visitors from the UK in 2012. Whilst search volumes remain low, the country saw an increase of 75% in interest, likely to be mainly Iraqi nationals visiting. However, the country has also been stepping up its marketing efforts as a destination for cultural and religious tourism with its second appearance at London’s World Travel Market. A number of travel companies are now also offering adventure tours to Iraq for trekking, biking and backcountry skiing.
With a rise of 51% year on year, The Cape Verde Islands, which lie off the west coast of Africa, are becoming an increasingly attractive winter sun alternative to other mid haul destinations such as The Canaries and Egypt, the latter of which has seen a 12% drop in searches from the UK .
Who’s coming?
It’s the Russian market which has grown the most in the last 12 months, with over 100% rise in searches to UK. However with London set to take the world stage for the Olympics in 2012 it is actually the Australians who top the table in terms of the number of visitors while it is the Japanese who are seeing the biggest increase in searches over the Olympic period with a 300% rise. Visitors from The Netherlands, Belgium, Germany, Denmark and Switzerland follow closely behind.
The full report is now available at: http://www.skyscanner.net/news/Skyscanner%20Travel%20Trends%202012.pdf
Ends
About Skyscanner
Skyscanner is Europe’s leading travel search site providing instant online comparisons for millions of flights on over a thousand airlines, as well as car hire and hotels
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