Business Activities News
- Gome, Bear Stearns to form $500m fund
Date: 22-Mar-2007 Sources: (Shenzhen Daily)
BEAR Stearns Cos. and an affiliate of Gome Electrical Appliances Group said Tuesday they would form a US$500 million private equity fund focusing on China's booming retail sector.
Eagle Investment Group and Bear Stearns, the biggest U.S. underwriter of mortgage bonds, would be equal partners in the investment, one of the largest investments ever for Bear Stearns where the bank has committed its own funds.
'In terms of size this is off the charts for anything Bear Stearns has ever done,'Donald Tang, the chairman of Bear Stearns Asia, told reporters after the signing ceremony.
The investment also marked another diversification move by Gome, China's largest electronics retailer, which earlier this month said it would launch a US$800 million China property fund with Singapore asset manager Pacific Star.
If the venture is successful, the partners have agreed to expand their cooperation to other sectors in China and elsewhere in Asia.
'Outside of the electronic retail business, this fund will have the freedom to invest in mid-tier companies across China,'Huang Guangyu, chairman of both Eagle and Gome, told reporters.
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