Huang Guangyu's Eagle Investment and the U.S.-based Bear Stearns Merchant Banking have jointly announced plans to form a strategic investment alliance to target China's retailing sector.
During the initial stage, the parties will each invest US$250 million into the alliance.
Huang Guangyu, chair of Eagle Investment, says that China's retailing industry still has great space for development, particularly in the second or third tier cities and the vast rural areas. This is why they have decided to invest in the sector.
As an Eagle Investment affiliate, Gome Electronics specializes in home appliance, and the parties have agreed not to make any investment into the home appliance sector. Huang emphasizes that the investment alliance with BSMB has nothing to do with the Hong Kong listed Gome.
This is the first time that BSMB has made a direct investment in China. Bear Stearns Merchant Banking is a leading institutional private equity firm focused on making equity investments in middle-market companies.
Huang Guangyu, known in Hong Kong by his Cantonese name Wong Kwong Yu, is the founder and president of Eagle Investments, the holding company for Gome, China's electronics retail giant, which sells air-conditioners, refrigerators and washing machines.