Yashili International Holdings Ltd., a Chinese infant-formula maker in which U.S. investment firm Carlyle Group owns a stake, is planning to raise as much as US$458 million in a initial public offering this month on the Hong Kong Stock Exchange.
What disclosures are required in a Hong Kong prospectus? Will it include the following:
The Legal Weekly, an affiliate of the Legal Daily, a Chinese state-owned newspaper published by the country's Ministry of Justice, claims that Yashili, a Chinese dairy, repackaged 30 tonnes of contaminated milk powder as new product. Yashili, in which global private equity fund Carlyle Group owns a 17.3% stake, emphatically denies the accusation.Carlyle invested in tainted milk supplier Yashili a year ago. What % return will they get from the looming IPO? History shows Carlyle garnering 300% in China vs. their normal 30% annual returns. China is beloved by private equity underwriters (PEU's). It's easy to see why.