BEIJING, HONG KONG and NEW YORK, June 7, 2011 /PR Newswire-Asia/ -- ChinaSoft International Ltd. (hereinafter referred to as "ChinaSoft International" or the "Company") (HKSE: 354) announced today that ChinaSoft International signed a cooperation agreement with Keen Insight Limited, a wholly-owned subsidiary under Hony Capital (Beijing) Co., Ltd (hereinafter referred to as "Hony Capital") to introduce strategic investment from and forge strategic partnership with the latter.
According to the agreement, ChinaSoft International shall become Hony Capital's core portfolio company in the IT domain and Hony Capital's integration platform for its future investments in the IT domain. Pursuant to the Subscription Agreement, Hony Capital's Keen Insight agreed to subscribe for, and the Company agreed to allot and issue, 150 million (150,000,000) subscription shares at the subscription price of HK$1.86 per subscription share, represent approximately 11.76 % of the total number of issued Shares. Hony Capital will become one of ChinaSoft International's substantial strategic investors. The Company shall use its persistent endeavours through the building of its enterprise platform to become a domain integrator and to realize Hony Capital's strategic investment objectives of integration and globalization development of the IT domain as well as its target investment return.
As one of China's most sustainable and rapidly expanding markets, the IT service sector, which is undergoing a phase of vigorous growth, is in urgent need of an industry consolidator. Depending on a corporate development strategy that places an equal stress on organic development and M&A-based development, ChinaSoft International's successful practices have been widely recognized in the industry. Hony Capital believes that the strategic cooperation between two parties is based on ChinaSoft International's relentless pursuit and constant efforts to achieve the goals of being "Locally-Rooted, Offering Services Globally, Growing into the World's Leading Company". As a strategic investor, Hony Capital will use its brand influence, industry awareness and capital market resources to help to build ChinaSoft International as platform-based company so that the Company develops into a world class leading IT service provider with rapid growth.
Through the strategic cooperation relationship and the integration platform to be established with the Company, Hony Capital shall immerse itself into the IT service industry; jointly analyse the industry with the Company and; shall, in accordance with the jointly development strategy with the Company, search, select, invest and integrate different IT service companies on a global basis and drive the building and development of such platform. Hony Capital shall assist the Company to maintain its edge in the development of IT application of major industries in the PRC; focus on potential emerging industries; and make contribution to the IT development of various industries in the PRC as a whole. Additionally, Hony Capital shall recommend the Company as the major IT service provider in those entities in which it has invested; and Hony Capital will participate in Company's strategic and corporate development management and continuously review the terms of this strategic cooperation according to the needs of strategic development.
According to ChinaSoft International, the fund investors that focus on industry development and support long-term corporate development are an integral force to the industrial development. Hony Capital, as China's renowned equity investment fund, boasts successful strategic investment experience in selecting well-established enterprises from a growth industry, and promoting industrial integration and internationalization through investments. ChinaSoft International is convinced that Hony Capital's investment concept of highlighting and supporting management team, and providing value-added services for enterprises in capital and business, as well as the Company's development vision of growing into the world's leading IT service provider, all constitute a solid basis for the two companies' strategic cooperation.
According to the disclosure of interests of Hony Capital, upon completion of the Subscription, Hony Capital will approximately own 15.75 % of the total number of Company issued Shares. As Hony Capital becomes the core shareholder of the Company, and with the consecutive developing and deepening of bilateral strategic partnership between the two parties, ChinaSoft International will definitely enter into a new era of rapid growth.
About ChinaSoft International:
ChinaSoft International Limited, "CSI" (354.HK), is a global Information technology service company rooted in China with end to end service capability. The major verticals we cover are: Government and Manufacturing, Finance and Banking, Telecommunications and High-Tech. The Services we offer include: IT consulting, IT technical service solution and IT outsourcing service. CSI has reached annual revenue over 1.6 billion RMB with more than 10,000 employees located worldwide, including 25 cities in China, Princeton, NJ and Seattle, WA in the US, as well as Tokyo in Japan and London in England. CSI has achieved 57% service revenue CARG in the past eight years.
About Hony Capital
Founded in 2003, Hony Capital is a PRC-focused middle-market private equity firm which is sponsored by Legend Holdings Limited, employing a "value creation" investment philosophy to increase the financial performance and value of its portfolio companies. With over US$4 billion in assets under management across six funds, Hony Capital primarily focuses on construction materials, pharmaceuticals and healthcare, construction machinery and consumer & retails industries. Hony's secondary industry focus is on media & entertainment, financial services, and energy and resources
SOURCE Chinasoft International Limited