Category: Finance

Tiger Brokers raises US$29 million Series B funding round backed by CITIC Goldstone, Huagai Capital

Beijing-based online brokerage firm Tiger Brokers Co. on Wednesday has successfully raised US$29 million for its Series B funding round, which was participated by CITIC GoldStone Fund Management Co., Ltd. and Huagai Capital.

Existing investors including Zhen Fund and China Renaissance K2 Ventures have also participated in the round, which is worth 200 million yuan (about US$29 million).

This funding round follows the financing back in September 2015 where Tiger Brokers secured an RMB 100 million (about US$16 million) round backed by Chinese smartphone maker Xiaomi Inc.

Founded in June 2014, Tiger Broker, through its web securities and transaction platform, provides brokerage services for Chinese investors that wish to invest in securities abroad, particularly stocks listed on the U.S. and Hong Kong exchanges.

In addition to access to China A-shares, as well as U.S. and Hong Kong stocks, Tiger Brokers also support transactions involving securities margin trading in addition to 13,000 U.S. stocks, share options, and ETF products.

“We invested in Tiger Brokers in its angel round because we believe in its objective of serving the trading needs of the global Chinese investors,” said the managing partner at China Renaissance K2 Ventures, Li Li.

Following the deal, Mainland China’s CITIC Securities Co., Ltd., the brokerage arm of the biggest state-owned financial conglomerate and parent of CITIC GoldStone, will also serve as a mentor to Tiger Brokers, providing strategic advice on the company’s growth moving forward.

The company aims to use the latest proceeds on technology infrastructure upgrade, big data development, user experience improvement as well as new business initiatives.

“Growth in securities trading apps is an inevitable trend, in tandem with the accelerating popularity of smartphones and driven by the demand by Asia-based investors for a more globally diversified allocation of their assets,” Tiger Brokers CEO, Wu Tianhua said.

“Our goal is to make Tiger Trade the app of choice for any Chinese speaking investor with an international investment portfolio,” Wu further adds.

The international securities startups also announced last week about its plans to advance its online brokerage services into Singapore, which provides investors with an opportunity to access to low-commission cross-border investment choices.

By Vivian Foo, Unicorn Media

SATS to acquire 10% stake in Evergreen Sky Catering Corp for US$22.3 million from Malaysia Airlines

Airport services group SATS has entered into a conditional share sale agreement with Malaysia Airlines in acquiring a 10 percent stake in their in-flight meals caterer Evergreen Sky Catering Corporation (ESCC).

As per details of the agreement, SATS will be acquiring 11 million ordinary shares in the capital of Evergreen Sky Catering for RM100 million (about US$22.3 million), adding to its originally owned 16.5 million ordinary shares which represent 15 percent in ESCC.

Following the acquisition, the Singapore-listed SATS would now own 27.5 million ordinary shares in the capital of ESCC, which represents 25 percent of the total issued ordinary shares in the capital of ESCC.

With this, ESCC would also become an associated company of SATS, the provider of gateway and food solutions announced during its filing at the Singapore stock exchange on Tuesday.

Commenting on the deal, SATS said, “The proposed acquisition is in line with the company’s strategy of growing the scale of its food business and enhancing its connectivity to better serve its customers across key airports in Asia.”

The acquisition is not expected to have any material impact on the company’s net tangible assets per share and consolidated earning per share for the current financial year.

Shares of SATS closed at S$0.02 cents higher at S$4.85 on Tuesday.

By Vivian Foo, Unicorn Media

Indonesia-based reinsurer Marein to raise US$41 rights issue in 2017

Maskapai Reinsurance Indonesia (Marein), one of only four local reinsurance companies in the country, has made plans to raise US$41 million from a rights offering in 2017.

The company said it will sell up to 130 million new shares in a right issue by June 2017 in order to strengthen its existing capital.

Reinsurers provide insurance for other insurance companies, Marein along with Reasuransi Indonesia Utama, Reasuransi Nasional Indonesia, and Tugu Reasuransi Indonesia are the only four local reinsurance companies in Indonesia.

Local firms often lack capital compared to their larger foreign reinsurance peers, forcing Indonesian insurance firms to seek coverage for big insurance policies abroad.

However, when local insurance firms pay for premium overseas coverage, it will complicate government efforts to balance the country’s current account.

Hence, Financial Services Authority (OJK) has requested the four reinsurers, Marein and its rivals to increase their capacity to cover more clients.

“In order to increase the capacity, we have to raise capital,” said Marein president director Robby Loho to Jakarta Globe.

“The company is expected to reap IDR 1.5 trillion in premium income this year, with an increment of 40 percent from last year’s IND 1.07 trillion”, said Yanto J. Wibisono, Marein’s finance director.

Besides, the premium income at Marein has also reached IDR 907 billion in the first nine months this year, increasing by 29 percent from the same period in 2015. This was driven by a double-digit growth in life and general reinsurance segments this year.
Fitch Ratings, one of the big three credit rating agencies affirmed Marein’s national insurer financial strength with an A+, as well as its international IFS rating of BB back in August.

Fitch said that the rating reflects Marein’s high business concentration in catastrophe-prone Indonesia, its modest market position, and despite its long operating record, small asset size compared with some of its local and regional peers.

By Vivian Foo, Unicorn Media.

Japan’s Outsourcing Inc acquires German Orizon Holding for US$85.2 million

Japanese Business Process Outsourcing (BPO) firm Outsourcing Inc. has announced the acquisition of German staffing company Orizon Holding for an estimated €81.6 million (about US$ 85.2 million).

Outsourcing has acquired the full stake of the business through the Japanese group’s German subsidiary OSI Holding in a move to safeguard its business operations amid a highly unpredictable and volatile market.

The closing of the transaction is expected to occur by June 30, 2017. This deal will also see an exit for private equity firm Silverfleet Capital Partners after almost ten years in portfolio.

The acquisition of Orizon Holding is part of Outsourcing’s latest plan – VISION 2020: Tackling New Frontiers, in which the Tokyo-headquartered firm aims to grow in the direction of Lehman-class environmental change.

However, the BPO firm also noted that it has been conventionally engaged in manufacturing outsourcing business and confronted volatility risks since the collapse of Lehman Bros in 2008.

Thus, with this acquisition, Outsourcing Inc. can leverage on the strategic location of Germany, one of Europe’s leading industrialized countries for the overseas expansion of their manufacturing businesses.

Besides, Orizon Holding is also the eight largest staffing company in Germany with its strengths in mechanical engineering, aviation, and medical sectors.

“Orizon surpasses its peers in profitability and is expected to achieve ongoing growth,” Outsourcing Holdings said in a statement.”This transaction will provide the group with a strong foothold to develop into the European industrial nations, including those in Eastern Europe.”

The company has kickstarted some medium-term management initiatives to scale globally into the sectors with less susceptibility of fluctuations.

The plans call for outsourcing business to convenience stores industry and the U.S. military bases in Japan, while undertaking the public services contracted to the private sectors in Australia and the UK.

In August 2016, Outsourcing Inc. has earlier strengthen its Europe footprint by acquiring British BPO business Liberata for 43 million pounds (about US$ 53.4 million).

By Vivian Foo, Unicorn Media

Warburg Pincus-backed D&J China launches US$1.45 billion industrial park fund with AVIC Trust

D&J Industrial Property China Investment Ltd., a business park and suburban office developer which is owned by Warburg Pincus through a majority stake, has launched a capital fund with AVIC Trust to invest in industrial infrastructures in China.

Co-founded by the Aviation Industry Corporation of China (AVIC) and OCBC Bank of Singapore, AVIC Trust is an investment and trust manager in China, with assets under management of over RMB430 billion (about US$62.18 billion).

With this partnership, the D&J Zhiyan Equity Investment Fund raises an initial equity capitalization of RMB10 billion (about US$1.45 billion), founded on a USD-RMB hybrid basis, which is said to be the first of its kind in China.

“In addition to helping tenants lower potential cost of land sourcing, infrastructure and facilities construction, the fund also seeks to provide integrated services in the areas of finance, data storage, consultancy, and R&D,” said the chairman of AVIC Trust, Yao Jiangtao.

The capital is dedicated to China’s industrial infrastructure landscape, where it will mainly be used to invest in modern integrated industrial parks in China’s major cities – backing projects which include business parks, production facilities, and R&D parks.

“Driven by a strong trend for an industrial upgrade, continued urbanization and rise of the knowledge economy, the fund will invest in quality assets and provide modern infrastructure services for corporates and manufacturers across the entire industry value chain,” said Sun Dongping, the co-founder and chairman of D&J China.

China’s D&J Industrial holding is the second real estate platform co-founded by Warburg Pincus and Sun Dongping, after the pair co-founded warehouse developer e-Shang in 2011.

Since its establishment, China D&J has completed two rounds of financing and currently has over 1.2 million square meters of operating and under development properties in Beijing, Shanghai, and other Chinese cities.

The company’s tenants portfolio include Shell, Abbott, and FMC, as well as high-tech knowledge economy companies – Asiainfo and iSoftStone.

D&J China targets to grow its assets to over 5 million square meters in the next three to five years, targeting to increase its total asset value to RMB45 billion by 2020.

By Vivian Foo, Unicorn Media

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