Comprehensive M&A data with integrated detailed company information

Maoye to purchase Sinowell
Posted on Thursday, 12 October 2017 10:20
Maoye Communication and Network is acquiring Beijing Sinowell Information Technology in a deal worth CNY 1.48 billion (USD 224.42 million).

The two sellers, Ningbo Bonded Port Zone Jiachunqiu Investment Management and the target’s general manager Liu Yingkui, will retain continued exposure as they are expected to receive 8.8 per cent of the buyer’s enlarged capital as consideration.

Maoye is paying the vendors a further CNY 370.00 million in cash.

According to Zephyr, the M&A database published by Bureau van Dijk, this is the largest deal among those targeting telemarketers to have been announced worldwide since the beginning of 2016.

To fund the transaction, the acquiror is raising no more than CNY 1.11 billion, which accounts for 15.2 per cent of its enlarged capital, from ten investors at most.

Maoye is required to seek approvals from its shareholders and the China Securities Regulatory Commission before closing the two transactions.

Founded in 2010, Sinowell is an operator of call centres and is focused on providing telemarketing services for financial institutions.

Listed on the Shenzhen Stock Exchange, Maoye specialises in communication network services such as the operation of base stations, circuits and wireless local area network.

The group posted revenue of CNY 868.07 million in the six months ended 30th June 2017, down 2.5 per cent on the CNY 890.19 million recorded in the previous year.

Net profit for the period totaled CNY 107.81 million, compared to CNY 127.87 million in 2016.
By carrying out the acquisition, the buyer is hoping to expand scale, diversify its business and boost growth.

Zephyr shows there have been 97 other deals announced within the telemarketing sector since the beginning of 2016, with the largest of these being Altor Equity Partners’ SEK 1.74 billion (USD 185.69 million) agreement in December to take over Transcom WorldWide.

© Zephus Ltd