Carlyle gets green light on new deal
July 8, 2007
The Carlyle Group may be close to a deal for a stake in a privately owned hotel management company in China, the Financial Times reported. The private equity firm plans to invest nearly US$100 million in Kaiyuan Group. Carlyle has also bought a 26% stake in a
Chongqing glass fibre manufacturer for US$65 million and a 49% stake in
a steel pipe maker for US$80 million, but had been frustrated in several past investment attempts on the mainland. The deadline to close a deal for
a stake in Shandong Haihua, a state-owned chemical producer, passed
last week. Carlyle is still waiting for approval for its US$375 million takeover bid of Xugong Construction Machinery, China's largest crane and digger producer, a deal that has created political opposition. The firm has also been left out of investments in two state-owned banks. Beijing has taken a tough stance on foreign buyouts of state firms but not on the private sector.