Four giant PE fund Meikailong tight joint line of fire rush to the rescue
Home chain’s largest private financing in the name of the first document did not make Meikailong proud, for this rapidly expanding company, louis vuitton bags
more than 20 billion demand for capital is even more urgent. The financing on the eve of Meikailong funds to be exposed chain tension, the meeting was quite timely assistance to the mean injection.
In mid-June, the United States, led by Warburg Pincus four equity funds (PE) and Meikailong agreement, the four institutions will be 2.6 billion shares Meikailong, which has become a national chain of home the largest private financing.
Home chain’s largest private financing in the name of the first document did not make Meikailong proud, for this rapidly expanding company, more than 20 billion demand for capital is even more urgent. The financing on the eve of Meikailong funds to be exposed chain tension, the meeting was quite timely assistance to the mean injection.
“Investors are also related to its financial platform through various give us a full range of financial support.” Meikailong responded to this newspaper said.
Four giant joint injection
June 19, Meikailong chairman, chief executive car build a new following in some intense training came under the spotlight, and with him there in the media before the four top investment institutions home and abroad who. In addition to leading cast of Warburg Pincus Managing Director, Miao later, the executive director cheap slendertone
of its Asia JoeGagnon have to go to a site, CITIC Industrial Investment Fund Management Ltd. and president, chairman and CEO Liu Lefei Yibing Wu, Fuxing Group President Wang Bin, and its complex group Star Investment Management Co., Ltd. CEO Bin Tang wealth, Bohai Industrial Investment Fund Management Ltd. CEO and Executive Director Xue Ming Shang-Sen Lee are all coming out.
These organizations build a new car is the introduction of strategic investors. Build a new car Meikailong founded 24 years ago has now become the leading furniture chain enterprises Meikailong first round of financing in 2008 Warburg Pincus has invested 200 million U.S. dollars, accounting for 20% shares. It is reported that the investment led by the Warburg Pincus investment, Warburg Pincus Department of the second round of investment.
For the introduction of four specific forms of investors and the equity ratio, four institutions have avoided, but this is the closed Meikailong side. People close to Meikailong said the four institutional investors on behalf of the corresponding order of the number of shares.
“We first of all is the value of the tremendous development potential of domestic industry. 2003-2008 compound annual growth rate of the domestic furniture industry, retail sales were 29.3%, much higher than the annual growth rate of GDP, showing a high growth industry . “Yibing Wu said.
In recent years, rapid growth Meikailong has been set up in major cities, 66 stores, and stores with annual sales of more than 31.3 billion yuan, the number of stores, the business area, operating income and other indicators are among the industry first.
Resolve the financial pressure
Meikailong and other home is the biggest difference between store bought, through their own land, construction and operation of the ways self-built property, with the typical pattern of commercial real estate color.
“More than half of the mall for the self-sustaining.” Meikailong said, and their links and Gailou link to buy land, nature requires a lot of money. On the other hand, such operations are also expected to bring enormous benefits to both stores charge the tenants a lot of money booth fee, you can get all land prices, housing prices caused the value-added premium.
Last year, Meikailong opened 20 new stores, self-sustaining Meikailong not disclose the specific figures. According to public information, open a Meikailong if their stores, buying land and adding at least one billion yuan, if not taking into account the bank loan, then half of them set up their own terms, while the funds last year Meikailong up to 100 billion.
Industry sources say that Red Star’s expansion mainly by primitive accumulation of capital funds, bank mortgage loans, and external funding of three parts, and banks to cut mortgage loans to about half of the investment amount, the remaining can only rely on own funds and external funding .
And commercial real estate development has great similarity of Meikailong expansion mode, in the current macro regulation and control directed against the background of the real estate industry, the credit channel may encounter resistance, Meikailong financial pressure can not be underestimated. Late last year, joined the business Meikailong suddenly asked the business deposit paid 2 million yuan and 80 million in promotional costs, is also considered a policy response.
“Last year, through various means Meikailong began looking for new funds, in addition to finding new outside investors, also through the trust, security agencies and other sources for financial support.” Star had a concern about the U.S. Chiron’s PE sources said.
Industry to provide the data show that early this year when Meikailong assets and liabilities of more than 80%, the debt balance of more than 6 billion yuan.
In this regard, Meikailong responded to this newspaper said Meikailong “self, joint venture, leasing, company management” approach will combine operations to some extent avoid the risks of price fluctuations, the same time, scale enterprises in the process of growing greatly ease the pressure on funding chain. In addition, the company received four banks lending credit.
More importantly, standing behind the CITIC Industrial Fund CITIC Bank, CITIC Securities and other financial platform, the Bohai Industrial Fund, the Bank of China behind the car build a new financial platform Gengrang a reassuring.
However, in the context of financial pressure Meikailong, the four PE sector is a good angel as to support the development of Meikailong, or serve as the next “Barbarians at the Gate?”
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