Funds advised by CVC Asia Pacific Limited (“CVC”) have successfully subscribed to 323,500,445 new shares issued by the Hung Hing Printing Group Limited (450.HK) (“Hung Hing” or the “Company”) at a subscription price of HK$2.70 per share for a total consideration of HK$873.5 million. Following the subscription, CVC holds 35.0% of Hung Hing’s enlarged share capital and has appointed 4 non-independent directors to the board.
Hung Hing is CVC’s fourth investment in Greater China over the past 12 months, and demonstrates CVC’s continued commitment to the Greater China region. The four investments are:
- Zhuhai Zhongfu – China’s #1 PET beverage packaging company
- Asia Dekor – China’s leading laminate flooring manufacturer
- Nien Made – Asia’s largest window blinds and shutters manufacturer
- Hung Hing – China’s leading printing and packaging company
Hung Hing is the largest vertically integrated printing and packaging company in China with a strong and diversified base of domestic and export customers. Founded in 1950 and listed on the Hong Kong Stock Exchange in 1992, its main operations include folding cartons and book printing, paper and corrugated box manufacturing, and paper trading.
CVC brings extensive global experience in the pulp and paper, printing and packaging sectors, and has made a number of related investments including:
- GS Paper and Packaging – Malaysia’s largest paper and corrugated box manufacturer
- Asia Printers – a children’s book printing and financial printing group based in Hong Kong
- Smurfit Kappa – one of the world’s largest manufacturers of containerboard, corrugated containers, folding cartons and paper bags
- Flint group – an integrated supplier of printing ink in Germany
The subscription will bolster the Company’s financial position, and CVC intends to leverage on its experience to help the Company strengthen its management and explore future growth opportunities.
Commenting on the transaction, Matthew Yum, Hung Hing’s Managing Director, noted, “We believe that CVC can add long-term value to the Company with its extensive experience in this sector and strong financial expertise. We look forward to working with CVC to build on Hung Hing’s success.”
In this transaction, CVC was advised by Clifford Chance. Hung Hing was advised by O’Melveny & Myers and BNP Paribas.