Partners Group Holding AG (PGHN: SW) To Buy 75 Percent Of Savera Group’s Shares for A Total Of $325 Million

442

By Jessica Schultz on August 19, 2014 Financial

According to a latest news, Partners Group Holding AG (PGHN: SW), a Swiss based investment firm, has made an acquisition deal with Savera Group whereby Partners Group Holding AG (PGHN: SW) will acquire Saevera for a total of 2 billion Yuan (that makes around $325 million). Savera Group is a Chinese firm known for providing elevator systems and solutions to the market.

This acquisition deal is the first investment ever that Partners Group Holding AG (PGHN: SW) will be making in the country of China. Savera group is a Spain based firm that started its operations in Europe; however, the company now generates around 80 percent of its total revenues from the country of China. The deal will make Partners Group Holding AG (PGHN: SW) a majority shareholder of Savera Group.

Savera group was founded back in 1967. The company has asked Business Development Asia (BDA) to advise it over its financial deal. According to some people familiar with the deal, Savera group will sell around 75 percent of its shares to Partners Group Holding AG (PGHN: SW); the rest of the stake will be in the hands of the founders of Savera Group.

Partners Group Holding AG (PGHN: SW) refused to comment on the deal whereas no person from Business Development Asia (BDA) was available to comment. Similarly, no spokesperson from Savera could be reached for a comment on the recent deal that it made with Partners Group Holding AG (PGHN: SW).

As of June, Partners Group Holding AG’s (PGHN: SW) total assets exceed $45 billion. The company has invested in infrastructure, private equity, real estate and debt. The company is now turning its investment activities towards the Asian region. Partners Group Holding AG (PGHN: SW) is now making direct investments in the companies, with Savera being its first direct deal.

The deal between Partners Group Holding AG (PGHN: SW) and Savera group is the latest example of a deal where the suitors sell controlling amount of company’s shares and keep a little for themselves.

This trend gained a lot of hype especially in those areas and sectors whereas the suitors were unable to exit their businesses from the Chinese stock exchange- due to a suspension that was ordered by the Chinese authorities in order to reform the market.

Moreover, the owner of Strix Group Ltd (AAHSTR.UL), AAC Capital UK, is also on a buyer hunt. AAC Capital UK wants to sell its Strix Group, a subsidiary company that manufactures safety systems for home appliances, at around $500 million. The company is expecting Chinese buyers since it has seen a huge growth in the country of China.

According to market researchers, the future of many niche sectors of businesses depends upon Chinese growth. Many investment firms are looking for opportunities where they can combine the Chinese demand with foreign technology.

The stocks of Partners Group Holding AG (PGHN: SW) saw an increase of 0.92 percent on the last trading day, August 18, 2014 when the news of its deal with Savera Group hit the market.