China Oceanwide’s IDG sale to Blackstone may net as much as $600m

Troubled China Oceanwide Holdings Group Co. Ltd. may turn a profit of as much as $600 million from its sale of International Data Group Inc. (IDG) to private equity giant Blackstone Group LP, Caixin learned.

China Oceanwide (link in Chinese) is scrambling to raise cash to repay billions of dollars in debt. The Beijing-based holding company agreed Thursday to sell IDG to Blackstone for an enterprise value of $1.3 billion after five months of preparation and negotiations, according to statements from both sides. New York-based Blackstone has $650 billion in assets under management.

China Oceanwide acquired IDG, a leading tech media and data company, in March 2017 for almost $700 million, sources with knowledge of the deal told Caixin. That means the Chinese giant may clear as much as $600 million from the deal, without taking into account the cost of financing the acquisition four years ago.

“The high-quality data, analytics, and insights IDG delivers to technology leaders are only becoming more critical as the pace of growth and innovation accelerates,” said Peter Wallace, global head of core private equity at Blackstone, in a statement. “IDG has a trusted brand and deep knowledge of tech suppliers and buyers, and our investment will help the company accelerate its plans for creating even more advanced product offerings across its business.”

Launched in the U.S. in 1964, IDG provides research, data and advisory services on technology and industry trends in more than 110 countries.

China Oceanwide has to repay 20.9 billion yuan ($3.3 billion) in bonds that will mature or are subject to redemption this year, according to Caixin calculations. About two weeks ago, one of its offshore units failed to repay $280 million of dollar bonds issued in May 2019 as the company went on a global acquisition spree. In addition, the conglomerate owes billions of yuan in other types of debt.

In recent months, China Oceanwide planned to sell assets at home and abroad to repay debt. However, some plans struck obstacles as the assets involved were previously pledged for financing, according to public filings.

This article was first published on Caixin Global.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.