China Digest: Horizons to set up SG office; Carlyle to buy packaging firm HCP for $1b

Hong Kong. Photo by Shuja Official on Unsplash

Li Ka-shing’s Horizons Ventures is launching an office in Singapore as its first office outside of Hong Kong. Separately, Carlyle Group is poised to acquire Chinese packaging firm HCP for about $1 billion.

Li Ka-shing’s Horizons Ventures to set up SG office: report

Horizons Ventures, the private investment arm of Hong Kong tycoon Li Ka-shing, is setting up a Singapore office to source new deals and support portfolio companies seeking to expand in Asia, Bloomberg reported on Friday.

As its first office outside of Hong Kong, Horizons will relocate as many as 10 staff to the city-state including Jacky Li, a senior investment manager who will focus on deal execution, and Jeffrey Ho, a portfolio curator.

Horizons, which was co-founded by long-time confidante Solina Chau, is in talks with universities and professionals to explore potential investment and hiring opportunities. Chris Liu, an Adelaide-based portfolio curator for Horizons, told Bloomberg that the company has deployed “well over $100 million” across its Australian investments with Southeast Asia likely to get similar, if not higher, amounts of deals.

“We have about 23 investments across the region and operating out of this hub actually becomes pretty important because everyone is here,” said Liu. “Building a hub out of Singapore and helping our companies create and identify strategic opportunities and partnerships into the South East Asian region makes total sense.”

Li, who has $35.5 billion in net worth, had accumulated his early fortune on infrastructure, telecommunications, and real estate before he enjoyed a surge in wealth thanks to investments in companies like Zoom Video Communications and Spotify Technology via Horizons.

Carlyle nears $1b takeover of packaging firm HCP: report

US-based buyout firm Carlyle Group is poised to acquire Chinese packaging firm HCP from its owner Baring Private Equity Asia (BPEA) for about $1 billion, Bloomberg reported on Thursday, citing people familiar with the matter.

Carlyle just finalised the details of a purchase agreement with BPEA this week. It expects to obtain regulatory approvals and complete the transaction in the following months, the people said, asking not to be identified because the information is confidential.

Founded in 1960 in Taiwan, HCP designs, develops, and manufactures packaging containers for the cosmetics, skincare, fragrance, and toiletries industries. The company has 10 manufacturing locations in Asia, North America, and Europe and serves over 250 consumer brands, according to its website.

Hong Kong-based BPEA hired Goldman Sachs to sell Shanghai-based HCP at an initially targeted price of over $1.5 billion, according to sources cited in a Reuters report in November 2021. The report said that BPEA had invited bids for HCP in early 2020, but the sale plan was delayed due to the pandemic hit.

BPEA bought HCP from US private equity (PE) firm TPG for $775 million in December 2015.

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief
Subscribe to Newsletter

This is your last free story for the month. Register to continue reading our content