Chinese electric vehicle manufacturer BYD Co. is set to raise up to HK$40.7 billion (approximately $5.2 billion) through the biggest share sale Hong Kong has seen since 2021. This significant move, unveiled on March 3, 2025, involves the offering of 118 million shares priced between HK$333 and HK$345 each, reflecting a discount of up to 8.4% from BYD's closing price on the previous trading day. This strategic financial initiative highlights BYD's intent to strengthen its capital position and expand its footprint, particularly amid growing competition within the EV market.
Meanwhile, on the same day, Jupiter Green Investment Trust plc announced amendments to its proposed scheme of reconstruction and voluntary winding-up. The revised terms focus on adjusting the timing of the Ecology Price per Unit valuation, which will now be effective as of noon on the Calculation Date instead of the previously designated Effective Date. Jupiter's press release emphasized the need for this modification as part of its strategy to align asset valuations and mitigate fluctuations, which is particularly important for maintaining investor confidence during turbulent market conditions.
“This amendment aims to synchronize the valuation approach for the Ecology Units and the Rollover Pool,” stated representatives of Jupiter Green Investment Trust, noting the importance of ensuring stability as part of their strategic reorientation.
Turning to the competitive arena of mergers and acquisitions, KKR and Mizuho Financial Group are reportedly on the brink of finalizing the restructuring of Avendus Capital, following prolonged negotiations which began earlier this year. Esteemed sources indicate Mizuho's leading position to secure control of Avendus at valuations exceeding Rs 6,000 crore, outpacing other bidders such as Nomura Holdings and Carlyle.
Recent discussions have centered on the intricacies of the deal structure, including important human resources aspects and the potential roles of existing promoters post-transaction. A banker acquainted with the negotiations revealed, “This includes HR-related aspects and the continuity of promoters after the deal closure,” emphasizing how these factors can significantly influence the deal's success.
The discussions have reportedly become complex, particularly concerning the original promoters' willingness to remain with the company following Mizuho's entry. “It is quite likely if a promoter opts out of the company post the deal, they may still be bound by a handover clause for 12-24 months,” suggested another source. “Mizuho may impose certain non-compete clauses for key managerial persons, including the exiting promoters of Avendus, should they decide to depart,” indicating the intense consideration of protecting the company's framework during this transition.
Insights indicate the final bidding periods closed by mid-January 2025. Although valuation discussions seemingly reached conclusive stages by early February, these finer points surrounding promoter-related adjustments are the principal factors delaying formal agreement. “It has now reached a point where KKR has to take a call on the transaction and cannot keep the bidders waiting for longer,” another banking source remarked, underlining the urgency around the deal.
Despite this pressure, the battle for Avendus Capital appears far from settled, as other contenders remain engaged. Avendus Capital’s spokesperson, when contacted for comment on the negotiations, firmly stated, “We strongly refute the claims in your query. These assertions are completely inaccurate and have no factual basis.” Meanwhile, KKR has not publicly commented, and attempts to reach Mizuho for statements went unanswered prior to publication.
Notably, KKR had previously acquired just over 60% of Avendus Capital back in 2015. The firm’s later decision to exit has created openings for prospective investors. Along with KKR, Gaja Capital and Yogesh Mahansaria, the founder and CEO of Alliance Tire Group, who collectively possess around 20% of the company, are also reportedly considering divesting their stakes.
The financial maneuvers of BYD, Jupiter Green Investment Trust, and Avendus Capital showcase dynamic shifts within the market, as companies adapt to contemporary challenges and investor demands. Each strategic move reflects broader trends toward transparency and stability, underscoring the significance of these developments across the global financial stage. Investors and stakeholders are encouraged to remain vigilant, as they navigate through these transitions, which increasingly shape their prospects and investment landscapes.