Lianchuang Optoelectronics announced on June 24 that it planned to subscribe for a share of the Shanghai M&A Fund Equity Investment Partnership (Limited Partnership) for no more than 290 million yuan. The fund's proposed fundraising scale is 3 billion yuan, with an expected internal rate of return of about 18%.
Lianchuang Optoelectronics stated that the main function of the merger and acquisition fund is to provide funds, resources, program design, talent and other services for the merger and reorganization of industrial groups or listed companies. Listed companies can expand potential investment opportunities in relevant industrial chains by investing in M&A funds, and can also lay a good foundation for listed companies' future industrial expansion and rapid expansion and strength.
Haitong M&A Capital Management (Shanghai) Co., Ltd. is the general partner and fund manager of Shanghai M&A Fund. This company is a newly established company. Its team building and business development have yet to be improved. There is uncertainty about whether its operation and management capabilities can meet the expected planning of Shanghai M&A Fund.
Just in April this year, Kunming Pharmaceutical teamed up with PE to establish an industrial M&A fund. Kunming Pharmaceutical and its executives invested 100 million yuan. The first major move after the establishment of the M&A fund was the M&A and reorganization of Kunming Pharmaceutical. However, due to multiple factors, the reorganization was ultimately aborted. In addition, in China's capital market, M&A funds are still in the blue ocean. The M&A market is large and developing rapidly. As an emerging product, with the increase in M&A fund participants and their gradual maturity, the sustainability of support policies is questionable.
The announcement also showed that based on the income calculation of Haitong M&A Capital, the expected internal rate of return of the M&A fund can be about 18%. However, this calculation contains many assumptions, and the actual level of income will mainly depend on the funds of the M&A management company and the operational capabilities of the project.
Lianchuang Optoelectronics also announced on the same day that it planned to invest 10 million yuan to acquire 10% of the equity of Haitong M&A Capital Management (Shanghai) Co., Ltd. held by Ganshang United Co., Ltd.
ANNA