Infinity Private Equity has led a $14.3 million private placement in Chinese supplier of industrial heat exchangers THT Heat Transfer Technology Inc. (Nasdaq: THTI).
The investment was made at a company value of $51.3 million, before money, and bring THT's company value to $65.6 million. The placement was closed yesterday. The other investors in the placement were Avant Capital Group, Mitsubishi UFJ Financial Group (NYSE: MTU; TSE: 8306), and Zhejiang Jinqia Hong Kong Ltd.
THT manufactures heat exchangers for energy conservation, carbon dioxide emissions reduction, and other environmentally friendly applications. The company has completed more than 3,000 projects for Chinese and foreign customers, including BASF AG, BP plc (NYSE; LSE: BP), LG Electronics Inc. (KSX: 66570), and for the Beijing Olympic Games in 2008. The company posted a net profit of $4.1 million on $36.1 million revenue in 2009, and a net profit of $3.85 million on $22.1 million revenue in 2010.
THT will use the proceeds to invest in a new factory for cold-air heat exchangers in Tianjin, China, and to buy compressors for the production of products for nuclear power plants.
Infinity Private Equity managing partner Amir Gal-Or said, "Infinity made the investment in Chinese Renminbi and US dollars. We're working on similar deals in outstanding companies that are not valued in line with their capabilities and worth. The objective is to invest in a company with a low market cap and help it grow."
"Globes": Is there a chance that THT will link up with Israeli companies?
Gal-Or: "We see such potential. They were here and showed interest. At this stage will focus on improving the company."
The Infinity Group was founded by IDB Holding Corp. Ltd. (TASE:IDBH) and the Chinese Development Bank. The company currently manages more than $700 million in eleven funds, nine of them in China.
Published by Globes [online], Israel business news - www.globes-online.com - on December 8, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010