Private-equity firm in hunt for Chrysler

http://www.msnbc.msn.com/id/17457379/

Private-equity firm in hunt for Chrysler
Report: Blackstone Group is seen as leading contender for automaker

Data: MSN Money and IDC Comstock delayed 20 min.

Updated: 7:01 p.m. ET March 4, 2007
NEW YORK - Private equity firm Blackstone Group has emerged as a
leading contender to buy the troubled U.S. division of German
automaker DaimlerChrysler AG, The Detroit News reported on its Web
site on Saturday, citing people familiar with the situation.

The paper said that Blackstone is moving forward with a detailed
analysis of Chrysler's finances and operations with an eye toward
making a formal bid, citing people familiar with the Chrysler sale
process. Other possible buyers include Cerberus Capital Management,
the paper said.

Blackstone and Chrysler were not immediately available for comment.


Two sources close to the sales process told Reuters last week that a
detailed sales prospectus for Chrysler Group bidders should be
completed soon, the first step toward a potential sale that would
unwind the 1998 merger that created DaimlerChrysler.

Private equity firms are expected to be among the potential bidders
for Chrysler that would consider the automaker's sale-related
documents, the sources told Reuters.

Meanwhile, General Motors Corp. has held preliminary talks with
DaimlerChrysler about an outright acquisition of Chrysler or some kind
of alliance with the automaker, sources have previously told Reuters.

Other automakers -- including Germany's Volkswagen AG, Italy's Fiat
SpA, affiliates Renault SA of France and Nissan Motor Co. Ltd. of
Japan and South Korea's Hyundai Motor Co. Ltd., have said they are not
interested in buying Chrysler.

 

The New Private Equity China Fund

―――John Kramer & John Pang ―――

J&J fund

Contact: John Pang
Email

Fund Objective

The New Private Equity China Fund (The Fund) has been formed to
achieve superior financial returns for its partners through investing
in multi-areas. The investment targets for the new co-investment fund
would be the high-growth business enterprises or investment projects
on the industry of New Energy, TMT, real estate, mining, sectors in
Mainland, China.

The new Fund will be set up as a BVI Investment Holdings company with
shareholders and Partners from both J&J and overseas investors. Both
J&J and the overseas investors could nominate its representatives to
be the partners of the fund as well as GP of the fund. The General
Partner of the New Energy China Fund is J&J Investment Management
Ltd., a BVI or Cayman Islands company. Each partner should pay his
management fees to the Fund Management Company under the fund. The
rate of the management fee should be 2.5%.


Fund Size and types of Transaction

The Fund is seeking to raise approximatelyUSD100 million. The target
is in keeping with the average size of deals being currently completed
in China of USD10-50million and reflects a realistic, if ambitious,
target for a first fund. If the investment opportunities are presented
to the fund before the full amount is committed. The General Partner
will consider calling a first closing at a lower level of commitment
to avoid missing an important investment opportunity. Fund will
encourage banking and financial services companies

Promise and Call System

In accordance to prevailing international fund management practice,
the new fund will adopt the “Promise and Call Systemâ€, i.e.upon the
establishment of the co-investment fund, both J&J and the overseas
investors will commit the total amounts of investment for the fund
respectively, but there is no need for either side to inject the money
in one goes. When an investment project has been tabled by the Fund
Managers and approved by the Partners of the fund, then each side will
provide investments directly into the approved project according to
the pre-agreed proportion.

Fund Management Team.

The leadership of the Fund consists of people who have broad and
relevant experience.

ï¬ 8 -10 years solid experience in Investment Banking Sector in China
ï¬ All of the group members can speak Chinese and English fluently,
hold degrees from top universities in Both Europe or America
ï¬ Holding plenty of good projects in hand, cost over 20 billions US$
ï¬ Successfully managed companies listed on stock exchange worldwide,
including China Bio diesel (AIM:CBI)
ï¬ Have strong relationship with Chinese government and banks
ï¬ Have specialized talent people in private equity field.
ï¬ Team Member:

Mr. Kramer earned his MS in Accountancy and BS in Analytical Finance
from Wake Forest University. Mr. Kramer received his CPA in 2005 and
completed the Charted Financial Analyst (CFA) program in 2006 while
studying Mandarin in the PRC.

Mr. John Pang earned his MBA in Business and Financial Management from
University of Liverpool, eight years solid management and investment
banking experience in China, has strong relationship with Chinese
Government, successfully helped two companies listed in Singapore and
London Stock Market.

Mrs. Clara. Yip with 15 years experience in Investment banking and
Private Equity sector, as one of key roles in the management team, She
successfully invested over 30 projects. She gained degree from New
York University.

Achieved Projects

ï¬ ï¬ China Wheel (E94.SI)
ï¬ ï¬ China Biodiesel (AIM:CBI)

A Part of Potential Project

ï¬ A.-
The total investment should be 500 million RMB.
The average P/E of Wind industry on domestic stock market is 30 times.
Return: After all of installation, the annual sales will be 325
million RMB with 30% of gross profit margin and 20% of net profit
margin.
Prospect: The project will be listed in 3 years. And in 4-5 years, the
borrowings will be paid off. According to the statistics of overseas
stock market, the return on investment will be 8 times after listing.

ï¬ B-
The total investment should be 460 million RMB.
The average P/E of Wind industry on domestic stock market is 30 times.
Return: After all of installation, the annual sales will be 258
million RMB with 30% of gross profit margin and 20% of net profit
margin.
Prospect: within 1 year to finish the construction of plant and to
commence. The project will be listed in 3 years. In 5 years, the
borrowings will be paid off. According to the statistics of overseas
stock market, the return on investment will be 8 times after listing.

ï¬ C-
The total investment should be 430 million RMB.
The average P/E of Wind industry on domestic stock market is 30 times.
Return: After all of installation, the annual sales will be 60 million
RMB with 28% of gross profit margin and 15% of net profit margin.
Prospect: in 3 years to commence. The project will be listed in 4
years. In 5 years, the borrowings will be paid off. According to the
statistics of overseas stock market and the project’s profit, the
return on investment will be 6 times after listing.

ï¬ D-
The average P/E of Wind equipment industry on domestic stock market is
42.55 times.
Return: The estimated sales will be 2 billion RMB with 35% of gross
profit margin and 25% of net profit margin.
Prospect: The project will be listed in 2 years. In 3 years, the
borrowings will be paid off. According to the statistics of overseas
stock market, the return on investment will be 10 times after listing.

ï¬ E-
The average P/E of Wind equipment industry on domestic stock market is
42.55 times.
Return: The sales in 2006 were 300 million RMB with 30% of gross
profit margin and 20% of net profit margin.
Prospect: The project will be listed in 2 years. According to the
statistics of overseas stock market and the project’s profit, the
estimated return on investment will be 9 times after listing.

ï¬ F-
Established in 2003, Commenced in 2005
Return: The sales in 2006 were 14 million RMB with 50% of gross profit
margin and 30% of net profit margin.
Prospect: If private placement is injected in this year the project
will be listed in 2 years. And in 4-5 years, the borrowings will be
paid off. According to the statistics of overseas stock market, the
estimated return on investment will be 10 times after listing.

ï¬ G -
It is a large and comprehensive enterprise engaging in manufacture of
oil and petrochemical equipment in China. It is comprised of 5
branches and 6 holding companies nationwide. In 2006, the sales
reached 580million RMB.
Prospect: Become one of the biggest petroleum equipment companies
around China in three years. The revenue will reach 1.3 billion RMB in
2007 and 2.35billions RMB in 2008.

ï¬ H – power -saving

The new technology, which is used in military and general engineering
field worldwide, hold more than 600 million RMB orders in hand. The
net profit margin is over 95%. It is esteemed as the most valuable
revolution in 2006 by China Military Dept. This Technology is shacked
the central Military committee of PRC. Net profit in 2008 will reach
1billion USD.

Fund Strategy

ï¬ Focus: cover all of the industries (especially on New Energy, TMT,
real estate, mining, sectors )
ï¬ Regions: Mainland China
ï¬ Stages: from early stage to expansion stage.
ï¬ Listing: in China, Hong Kong, USA, and UK.