Global private equity firm The Carlyle Group today October 25 signed a definitive agreement to pay $375 million for 85% of Xugong Group Construction Machinery Co XCMC, China's largest construction machinery manufacturer.
The deal represents the first time a leading SOE has sold such a high level of control to a private equity firm and was executed at two times net asset value NAV. This means it comfortably cleared a government set hurdle that companies only be sold at a premium to NAV.
XCMC is one of several subsidiaries currently owned by Xuzhou Construction Machinery Group XCMG, which will retain a 15% holding...
