Morgan Stanley Private Equity Asia (MSPEA) and the chairman of China Automotive Systems have submitted an offer worth about $172 million to take the company private. In a separate development, Abcfintech, a Chinese AI startup, has raised a total of $30 million led by venture capital firm Qiming Venture Parrners.
MSPEA submits take-private offer for China firm
The buyer group is willing to buy all outstanding shares for $5.45 apiece of the NASDAQ-listed power steering components supplier, it said quoting an exchange filing. The price is a premium to the August 31 closing price of $5.39.
China Automotive is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through eight Sino-foreign joint ventures. The company offers a full range of steering system parts for passenger automobiles and commercial vehicles.
The company currently offers four separate series of power steering with an annual production capacity of over 5.5 million sets of steering gears, columns and steering hoses.
Qiming leads $30m round in Abcfintech
Source Code Capital, SIG Asia Investment and Welight Capital also participated in the round, the report said. The funding proceeds will be used by the firm to improve its current products, as well as to expand its businesses outside of China.