Asia private equity firms have called for Hong Kongs
Takeovers Code to be brought in line with international
Unitas Capitals former partner Kei Chua told delegates
at yesterdays IFLR Asia M&A Forum that the
Codes onerous requirements were dissuading private equity
firms from pursuing takeovers of Hong Kong targets.
On the face of it, there are many reasons Hong Kong
ListCos are attractive to private equity investment, such as
scale of operations and cash flow, as well as real management
teams of commercially-minded people, he said.
But when you dig deeper and look at how a PE firm
would approach the takeover there are some pretty significant
structural and practical issues, Chua added.
Extensive restrictions on communication permitted with the
management and shareholders of a prospective target plus
onerous announcement requirements have significantly impaired
PE houses ability to...