cel, idg capital extend cooperation as chinese consortium completes acquisition of idg group

业务发展 2017/03/30
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china everbright limited (“cel”, stock code 165.hk) today announced the completion of its co-acquisition of international data group (idg). idg ventures, idg’s global investment arm, was jointly acquired by a chinese consortium comprising idg capital, cel, china oceanwide and bank of china group investment limited (bocgi), with idg capital now holding a controlling stake. idg’s traditional businesses, including it consultancy (idc) and media business (idg communications), were jointly acquired by idg capital and china oceanwide, with china oceanwide acting as controlling shareholder.
 
the chinese consortium comprising cel, idg capital, china oceanwide and bank of china group investment limited (bocgi) demonstrated its strength and capability in this acquisition. the deal is the newest cooperative venture between idg capital and cel. it follows the announcement in 2016 of the joint establishment of everbright-idg industrial fund (“the fund”), which was set up with the goal of becoming china’s most influential industry m&a fund. since then, the fund has actively pursued plans to invest in fintech and internet finance, pan-entertainment, education, consumption upgrade, high-end manufacturing and other sectors.
 
according to public information, the fund has invested a total of more than rmb15 billion in over 10 projects across different countries and markets to date. these include iqiyi, the video industry leader in china; global lighting giant osram’s lighting business; china ums, an acquirer and internet payment service provider; and the shanghai film art academy, among other investees.
 
in 2016, china surpassed the us as the world’s most active buyer in cross-border mergers and acquisitions with 545 deals, a year-on-year increase of more than 100% in terms of transaction value. the idg group acquisition represents a milestone as idg capital, now the controlling shareholder of idg’s global investment arm, will be able to further extend its global investment reach and propel its cross-border resource integration capability to a new level. backed by idg capital and cel, the fund aims to contribute to chinese enterprises’ competitiveness on the world stage by leveraging its experience and strength in the field of mergers and acquisitions.