Friday, July 9, 2010

Carlyle Group to Invest in CP Pokphand

Shanghai Daily reported The Carlyle Group will acquire an 11.3-percent stake in CP Pokphand Co Ltd. Like Carlyle, the Thai company has big plans for China.

American Chronicle didn't detail any arrangements with private equity underwriters (PEU's). It's piece on Pokphand's growth stated:

The Chia Tai Group, the Chinese unit of the Thai agribusiness giant Charoen Pokphand, will increase its investment in China of more than US$1 billion (32.4 billion baht) over the next six years. New projects will consist mainly of shopping complexes, hotels, condominiums and office buildings.

"Funding will stem mainly from the group's Chinese revenue, joint-venture partners and bank loans."

CP was the first foreign investor in China. Over nearly four decades it has poured billions of dollars into such ventures as shopping malls, the poultry industry, animal feed and motorcycle plants.

indicated CP would focus "on promoting its CP brand ready-to-eat foods in China."

Given Carlyle's stated objective of making massive profits in China, how will fat PEU profits impact Chinese waistlines?