Nexteer Automotive Completes Successful IPO in Hong Kong
TCG Press Release
October 10, 2013
LOS ANGELES - Nexteer Automotive (HK:1316) has completed a successful initial public offering (IPO) on the Hong Kong Stock Exchange. Following three years under Chinese ownership, Nexteer raised approximately HK$2 billion (US$260 million) at IPO in an effort to boost production and R&D. Nexteer was acquired by Beijing-based Pacific Century Motors in 2010 from General Motors, a deal that was hailed by the Wall Street Journal as “a landmark deal of the era.” As special advisor to the buyer, Transworld Capital Group (TCG) played a critical role in leading and helping close the 2010 acquisition. The company's enterprise value at IPO, approximately $1.8 billion, marks a significant increase over its acquisition price of approximately $450 million only three years earlier in 2010.
The IPO, jointly coordinated by JP Morgan and Bank of China International, marks a major milestone for Nexteer. Based in Saginaw, Michigan, Nexteer has a 98-year history and has become a global leader in advanced steering systems and driveline technologies. Covered in-depth a second time in the Wall Street Journal and profiled extensively in a case study by the University of Chicago's Paulson Institute, Nexteer has become one of the best-known examples of successful cross-border merger & acquisition deals between China and the US. Following the 2010 acquisition by Pacific Century Motors, Nexteer has maintained continuity and growth of its business globally and has made a greater effort to penetrate markets in Asia, all while continuing to grow it's US operations and employment base.
Nexteer Automotive (HK:1316) is a multi-billion dollar global steering and driveline business solely dedicated to electric and hydraulic steering systems, steering columns and driveline products for original equipment manufacturers. The company is listed on the Hong Kong Stock Exchange. Its 10,000 workforce serves more than 50 customers in every major region of the world. The company has 20 manufacturing plants, five regional engineering centers and 10 customer service centers strategically located in North and South America, Europe and Asia. Nexteer Automotive's customers include BMW, Chrysler, Fiat, Ford, GM, Toyota, and PSA Peugeot Citroen, as well as automakers in India, China, and South America. Please visit Nexteer at www.nexteer.com.
About Transworld Capital Group
Transworld Capital Group (TCG) provides cross-border strategic advisory and mergers and acquisition assistance to a diverse array of clients in the United States and across the Asia-Pacific Region. TCG also makes direct investments in select opportunities with unique cross-border value creation potential. With offices in Los Angeles, Shanghai and Hong Kong, we are uniquely positioned to help our clients and portfolio companies capitalize on opportunities which are not available in their home markets. TCG has set itself apart from other firms with an established track record of building industry-leading companies and completing several landmark transactions. More information can be found at www.transworldgroups.com.