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Chinese Private Equity Funds in Australian Mining Deal

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October 12, 2012

One of the deals of the week is a Chinese/Australian transaction. A PE fund founded by Chinese billionaire Yu Yong and a fund backed by state-owned China Development Bank have offered to buy Australian-listed copper explorer Discovery Metals Ltd in an AUSD850 million transaction, reports Reuters.

 

This is not the first PE investment for the state-owned China Development Bank last year it announced agreements with three private equity firms, KKR, TPG Capital and Permira, according to Dealbook. It also invested in the Terra Firma energy fund reported in this week’s newsletter.

 

The agreements with K.K.R., TPG and Permira gave the Chinese bank access to their expertise in private equity. China Development Bank already owns a minority stake in TPG, which also has sold stakes to other government-backed investment companies, including the Singapore Investment Corporation and the Kuwait Investment Authority.

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