FountainVest Acquires 19.44% Of Shanghai Kehua For $264M

Shenzhen-listed Shanghai Kehua Bio-engineering Co., Ltd. says that FountainVest Partners has acquired a 19.44% stake in the company for RMB1.6 billion ($264 million), according to a securities filing dated January 26.

FountainVest is to buy 75.57 million shares from four existing shareholders of Shanghai Kehua. The private equity firm will also acquire an additional 25 million shares in a private placement at RMB16 per share. FountainVest is to make the investment through its affiliated entity, League Agent (HK) Ltd.

Shanghai Kehua says it will use the proceeds for working capital.

Founded in 1981, Shanghai Kehua is a developer and manufacturer of vitro diagnostic medical equipment.

Established in 2007, FountainVest has offices in Shanghai, Beijing and Hong Kong. The firm’s four founding members have all worked at Singapore’s Temasek Holdings, with CEO Frank Tang having served as head of Temasek’s China investments.

FountainVest raised US$1 billion for its first fund in 2008. Its second fund was raised in 2012 with US$1.35 billion.

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