On February 7, 2017, Beijing Jianguang Asset Management Co., Ltd. subordinated to JIC TECH-INV and NXP Semiconductors jointly announced that Standard Products BU controlled by NXP Semiconductors successfully completed the M&A transaction with a total amount of USD 2.75 billion ( RMB 18.1 billion).
JIC TECH-INV is a first-grade member enterprise controlled by China Jianyin Investment Ltd. (JIC) and mainly engages in the investment of information technology sector. The company’s investments are primarily conducted with its own funds. Meanwhile, funding from public, it operates equity investment and M&A by other fund management subsidiaries.
From an industry-based company to an investment-based company
As one of the four investment platforms of JIC Group, JIC TECH-INV focuses on strategic M&A and equity investment in the frontier of information technology, especially in IOT(Internet of Things) and big data.
It is known that JIC TECH-INV has expanded its layout of big data and IOT by its two industrial platforms, namely, JIC Data and JIC IOT. Starting from 2015, JIC TECH-INV has transformed from the operation platform to the investment platform of information technology sector.
“Both of the two companies are operated at the downstream of the industrial chains, including big data application and IOT solution. In the future, we will rely on these companies, by assets allocation, such as M&A, to extend our business to mid/upstream of the industrial chains”, Dai Yi said.
Meanwhile, JIC TECH-INV also extends its layout of big data resource-end by jointly holding shares of information technology application companies. The typical investment cases include Shouqi Limousine Chauffeur of traffic big data, Ping An Health Cloud of healthcare big data, and SI-TECH of telecom operation big data.
Dai Yi pointed out that foreign companies are resistant to the M&A offers from China’s industrial companies to a certain extent. In the previous cases of cross-border M&A, China’s companies usually were confronted with huge resistance in the reform to the merged companies.
Dai Yi told the reporter, in the case of Nexperia M&A, “we almost keep all the management teams and even support them in every way. We do addition and multiplication rather than subtraction and division. The current operating results are quite positive.”
It is known that Nexperia’s holding company has been established in China and is going to start its sales business in China’s market very soon. According to the plan of China’s buyer, the R&D and manufacturing of Nexperia will be gradually built up in China to form an industrial ecosystem.
JIC Group is an investment company dedicated to global industrial chain layout in the fields of advanced manufacturing, consumption service, information technology, aging healthcare via four investment subsidiary platforms—JIC Investment, JIC Huawen，JIC TECH-INV and JIC Holding.
Dai Yi expressed that JIC Group has its own advantages in the followings: First. JIC Group is a company with extensive financial experiences. It emphasizes common value improvement with the invested companies and focuses on long-term continuous returns and assets appreciation of the target companies; Second, JIC Group has been proactively implementing overseas investment and M&A. Apart from rich investment experience, JIC Group has also shaped and developed a good reputation in some official departments of foreign governments. For instance, JIC Group has always been positioning in the white list when in the examination of foreign administration and anti-monopoly by many mainstream western countries; Third, JIC Group is an industry-centric investment group in China. It mainly holds and jointly share-holds real-economy enterprises, analyzes and seizes investment opportunities in the industrial logic and has deep understanding to the segmented fields of many sectors.
“We are not a purely financial institution and we have our own layout of real-economy industry. In this case, our cooperation with companies in overseas market is based on our deep understanding to the industrial sectors and our overseas investment experience, which forms ‘1+1>2’effect”. Dai Yi remarked.