MEDIA RELEASE PR36662
Infinity I-China Realizes More Than HK$85 Million (US$11 Million) in Partial Exit from Digital China
Investment and a 2.5x Return in Less Than One Year
TEL AVIV and HONG KONG, Oct. 20 /PRNewswire-AsiaNet/ --
- Infinity's Digital China Investment has Appreciated to US$25 Million
Infinity I-China, the largest China-Israel fund and the second
China-Israel fund of the Infinity Group, established by Clal Industries and
Investments from the IDB Group, announced today that it has exercised a
partial exit from its Digital China (DC - Stock code: 861.HK) investment for
HK$85.1 million or more than US$11 million. Infinity sold a block of shares
it purchased at HK$2.43/share in September 2008 for $HK 6.8/share for more
than a 2.5x return for its investors in just under a year. Infinity still
holds US$14 million worth of shares, demonstrating appreciation of the
investment to US$25 million, and a total profit (realized and unrealized) on
the investment of US$16 million.
Mr. Amir Gal-Or, Infinity I-China's Hong Kong based managing
partner, continued, "We invested in Digital China and its private Chinese
spin off, ITS, at the beginning of the crisis. Infinity brought advanced
Israeli technology to DC and its distributional channels. We did so because
we knew that DC is an industry leader with a strong market presence and, all
things considered, the time was excellent to exercise our ability to add
value and invest. Our partial exit today demonstrates Infinity's ability to
make the right investment decisions, also during a crisis, and then generate
outstanding returns for our investors. Infinity still has a substantial
amount invested in Digital China, understanding that the company remains one
to be watched."
Mr. Avi Fischer, co-chairman of the fund and deputy chairman
of IDB Group said, "During the crisis period we thought out of the box;
that's also why we invested in a public company. The result is to realize a
successful partial exit and a profit for investors within a short period of
time."
Headquartered in Beijing, Digital China (DC) is the leading
domestic IT company in China with more than HK$5B in revenues and regional
centers in 19 major cities in China. DC focuses on three major business
segments: systems integration, IT services and distribution of IT products.
DC distributes a vast range of IT products through a network of more than
9,000 resellers and agents across the country. DC was spun off from the
Legend Group (together with Lenovo) and has been independently listed on the
Hong Kong Stock Exchange since 2001. DCITS, a leading provider of Information
Technology (IT) services in China, is a spin-off of Digital China.
"For the past decade, Infinity and the IDB Group have built hubs of
business throughout China. They have done so by fostering relationships with
the leadership of both the Chinese business community and the government as
well as through the creation of opportunities at high level forums such as
the recent World Economic Forum in Dalian. Infinity has been in China long
enough to be considered a 'local' rather than a 'foreigner'. This unique
status enables us an edge when it comes to doing business in China and
generating profitable returns. The investment in Digital China, a company
which last month was ranked one of Asia's 50 best largest companies by Forbes
Asia, is a an example of an investment made possible by Infinity's special
status. We have ambitious plans for the next twelve months including
activities in some of China's largest and most promising sectors," concluded
Mr. Avishai Silvershatz, Infinity I-China's Tel Aviv based managing partner.
About the Infinity I-China
Infinity I-China, the leading fund of Infinity Group, was founded by Clal
Industries and Investments Ltd. from IDB, China Development Bank and CSVC.
Infinity Group is currently managing more than US$600 million through three
funds, two in China. It has a portfolio of 45 companies and 20 successful
exits. Infinity I-China, Infinity's second fund in China, is the largest fund
that focuses on Chinese-Israeli related opportunities and serves as a bridge
for Chinese-Israeli business initiatives in both directions. The fund has
attracted high profile investors around the world, including Clal Industries
and Investments from the IDB Group (Mr. Avi Fischer, deputy chairman of the
IDB Group and co-chairman of the I-China Fund) in Israel and the China
Development Bank in China. Infinity I-China has a highly experienced
international team at offices in Tel-Aviv, Hong Kong, Shanghai, Suzhou (near
Shanghai) and New York. Fifteen of the fund's professionals are based in
Philip Chen at philip.chen@infinity-equity.com or Marjie Hadad, media liaison
at marjie@netvision.net.il or call +972-54-536-5220.
SOURCE: Infinity I-China
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