Digital China Investment to pick up 24% stake in Vtron Group for $211m

Commercial buildings including the China Central Television (CCTV) Headquarters, center, stand in the central business district of Beijing. Photographer: Tomohiro Ohsumi/Bloomberg

Digital China Investment, an affiliate of Chinese government policy-making think tank State Information Centre (SIC), plans to invest 1.456 billion yuan ($211 million) in Shenzhen-listed Vtron Group, which specialises in kindergarten operation and the R&D of digital video wall products.

Vtron Group’s controlling shareholder, Vtron Investment Limited, and two board directors of the parent company inked an agreement with Digital China Investment on January 20 to sell over 219.52 million shares, representing about 24.22 per cent of the total issued shares of Vtron Group, shows a document filed with the Shenzhen stock exchange on Tuesday.

Digital China Investment will purchase the shares through a joint venture for 1.456 billion yuan at a share price of about 6.63 yuan ($0.96) apiece.

The transaction will see the Beijing-based state-owned company become the controlling shareholder of Vtron Group, while Vtron Investment Limited and the two board directors will no longer hold shares in the firm, according to the document.

Established in 2002, Vtron Group is primarily engaged in the operation and management of kindergartens, as well as the R&D, production, and distribution of digital video wall products. The company delivers video wall solutions including video wall display cubes, narrow bezel LCD panels, indoor LED displays, video wall processors, and visualisation interactive system (VIS) for barrier-free collaboration.

The company mainly serves customers in the fields of traffic control, energy and utility, security and military, public emergency, broadcasting and advertising, shows the company website.

Guangdong-based Vtron Group raised over 1.27 billion yuan ($184 million) in an initial public offering (IPO) on the Shenzhen stock exchange in November 2009.

The billion-yuan investment comes one month after Vtron Group agreed to offload a 70 per cent stake in preschool education brand Korr Education for over 303.38 million yuan ($44 million) last December, after Beijing introduced more stringent policies in November 2019 to regulate and renovate the preschool education market in the country.

Digital China Investment, founded in March 2019, operates as a private equity fund management firm that backs companies in the internet of things (IoT), AI, cloud computing, blockchain, and semiconductor industries. Some of its portfolio companies include Beijing-based corporate digital solutions provider Asiacom Technology, Hangzhou-based data application firm ITTIME and SIC Credit, which provides social credit-related services.

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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.