PE firm KKR picks up 70% stake in lighting business NVC China

FILE PHOTO: Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid/File Photo

Global investment firm KKR announced on Thursday the purchase of a majority stake in the Chinese lighting business of Hong Kong-listed NVC Lighting.

The investment, which was made from the $9.3 billion KKR Asian Fund III, saw KKR become a majority shareholder of NVC China with a 70 per cent stake, while NVC International holds the other 30 per cent, according to a statement.

The transaction came months after the New York-based private equity company disclosed this August that it would spend about 5.56 billion yuan ($790 million) for a majority stake in NVC China, which was expected to complete in the fourth quarter of 2019.

Together with KKR and NVC International, NVC China aims to enhance its ability to meet Chinese consumers and businesses’ demand for high-quality lighting products and solutions.

The deal enables NVC China to undertake “a long-term growth strategy,” seeking to “adopt enhanced technologies and practices to differentiate itself as an industry innovator in areas such as energy conservation,” said NVC China in the statement.

NVC China operates as a manufacturer of branded lighting products in China, and additionally provides lighting solutions to individual and corporate clients through a distribution network across the country.

“KKR will support the NVC’s China management team and look to accelerate the company’s expansion plans and identify new opportunities for growth across cutting-edge design, digital optimization, and environmental sustainability,” said Paul Yang, member and head of KKR Greater China.

Yang added that KKR will work with NVC China’s current operation centres and distributors with “strengthened and continuous investment in China.”

China remains as a core focus within KKR’s Asia Pacific strategy. The company, which already deployed over $4.6 billion in the market since 2007, is seeking to collect $12.5 billion for its fourth buyout fund targeting Asia, according to a fundraising document filed this November.

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.