Consortium to invest US$160 mln in Far Eastern Leasing

Oct. 15, 2009 (China Knowledge) - An investor consortium led by New York-based Kohlberg Kravis Roberts & Co, one of the world's biggest private equity firms and a pioneer of the leveraged buyout industry, announced today that it will invest US$160 million to acquire a significant minority stake in International Far Eastern Leasing Co Ltd, a Shanghai-based financial leasing company belonging to Sinochem Group.

Other members of the consortium include Government of Singapore Investment Corp, a global investment management company established in 1981 to manage Singapore's foreign reserves, and China International Capital Corp Ltd.

The deal came after months-long talks between the consortium and Far Eastern, sources said.

The investment is expected to support the future growth of Far Eastern, which aims to exploit the underdeveloped financial leasing market in China.

Far Eastern, set up in 1991, has signed leases worth more than RMB 26 billion. The company currently has one wholly-owned subsidiary. It has regional offices in Beijing, Shenzhen, Wuhan, Changsha, Jinan, Shenyang and Chengdu, and does business in 31 provinces in China.