Well managed China-based companies offer U.S. investors excellent propositions. This theory was recently put to the test with Harbin Electric, Inc. Based in China, Harbin Electric, Inc first became a U.S. listed public company through a reverse merger in 2005. At that time it was priced at $2 a share.
Recently, Harbin Electric Inc. underwent a successful US$800 million merger acquisition with Tech Full Electric at US$24 per share. Lucky public shareholders of Harbin Electric Inc. were paid US$24 per share in cash.
This makes this transaction the largest “going private” transaction for China-based companies in the U.S. for the 2011 year. Advisors for this acquisition included Morgan Stanley and Lazard Freres, as well as law firms Skadden Arps, Davis Polk and others.
James N. Baxter said about the transaction, “We are proud of our role in Harbin’s success story. Our corporate finance and due diligence team in New York and Beijing initially identified Harbin as an outstanding China-based business worthy of entering the U.S. capital markets. As one of our portfolio companies, we are pleased with the extraordinary investor returns Harbin has generated for its U.S. public shareholders.”