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在线翻译:
szdaily -> Business -> 
Companies cash out overseas M&A investment
    2021-09-09  08:53    Shenzhen Daily

COMPANIES in China have announced divestment plans of their overseas assets worth US$10.5 billion so far this year, the second highest total since at least 1998, a Bloomberg News report said Tuesday.

At the current pace, 2021 could surpass last year’s US$15 billion sum, it said. “These days Chinese companies are proactively looking at their asset portfolios, rather than simply buying,” said Bagrin Angelov, head of China cross-border mergers and acquisitions (M&A) at China International Capital Corp. “When there is a good offer, they are open to at least evaluate it.”

Some of the areas seeing renewed interest include waste treatment businesses, with Beijing Capital Group Co. and Beijing Enterprises Holdings Ltd. are considering sales of their overseas holdings. China Tianying Inc. in June agreed to sell its Spanish waste management company Urbaser SA for US$1.8 billion.

The current crop of Chinese sellers mostly aren’t in financial distress. Instead, they are disposing of holdings -- particularly those with strong cash flows -- whose valuations have surged as investors sift through the wreckage left behind by the pandemic, searching for profitable assets amid low interest rates.

Infrastructure and utilities are among the types of assets that Chinese firms are considering divesting. Beijing Capital is seeking US$1 billion from a sale of its New Zealand business that it bought for about US$667 million in 2014, Bloomberg News reported.

China Three Gorges Corp. is nearing a deal to sell a 25 percent stake in its overseas renewable energy asset portfolio that could be valued at as much as US$2 billion, it said.

“It’s good timing for them to monetize,” said Miranda Zhao, head of M&A for Asia Pacific at Natixis SA. “These assets provide healthy yields under the current low interest-rate environment and are attractive to other strategic investors in the region or infrastructure funds.”(SD-Agencies)

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