AIG to Buy Stake in Lifan | Lifan Initial Public Offering of Stock

[skadamo]

American International Group Inc, the world's largest insurer, said on Friday that it would buy a stake in Lifan Group, China's top motorcycle maker.
AIG spokesman Chris Winans confirmed that the purchase was a private equity investment through a fund at the company's asset management division, which managed nearly $744 billion as of September 30.

Winans did not disclose the terms or the size of the stake.

Yin Mingsha, owner of Lifan, told Reuters last October that he would sell no more than 20 percent of the company to outside investors and identified AIG and private equity firm Texas Pacific Group TPG.UL as potential partners.

The Shanghai Securities News reported earlier this week that AIG planned to buy 25 percent of Lifan.

Lifan, is targeting a domestic stock sale this year and plans to raise more than 1 billion yuan (£70 million) to help fund expansion of both motorcycle and car production.

Lifan motorcycles is exported to more than 100 countries.

http://www.visordown.com/motorcyclenews/view/insurers_plunge_cash_into_chinese_bike_builder/3688.html

Looks like Lifan will have an IPO soon too.  Anyone looking to buy?
http://www.marketwatch.com/news/story/aig-buy-stake-chinese-auto/story.aspx?guid=%7BF61D4934-3622-48DC-AB48-2F0437B33F4A%7D

[countrycruiser]

Stryder I have been watching this for a few weeks now.  I think I may be interested in getting in on this.  Not just because I own one, the car doesn't look all that bad either and gas savers are going to be here from now on.

[skadamo]

Cool.  ANy idea on how to get on board an IPO?  Do you have to know someone?

[skadamo]

I guess this can be the general Lifan Investment thread. 

Interesting Lifan article...

http://wdzgx.blogspot.com/2008/02/lifan-new-plan-from-exposure-to-brand.html

general manager of auto sales Lifan Huqi said: Lifan from beginning to the end of this year within the next three years, there will be as many as eight new vehicles will be launched.

[countrycruiser]

Stryder,

Sorry it took me a few days too get back.  Computer got sick and had to get cleaned out.  I have someone on the look out for the IPO.  I'll let you know as soon as he tells me.

CC

[walkingdude]

There are those that think that the Chinese government has allowed their people to travel to far down the road of capitalism that there is no turning back.  Maybe I'm just too old but Tiananemen square doesn't seem so long ago.   The rule law is not deeply enough rooted in that country for me to invest more than a flyspeck of my meager pile of assets there.  On the other hand I sure do like their manufacturer's motorcycles at the price they sell them for.  If I'm wrong, and I usually am, It won't be the first golden investment opportunity I miss. 

[almonpoole]

I have started watching CCTV (Chinese Central Television, English version). They are the up and comers in the world, at least for the last few years

Almon

[skadamo]

There are those that think that the Chinese government has allowed their people to travel to far down the road of capitalism that there is no turning back.  

This is a good point and a major arguement against most investments in Chinese companies.  I would not bank my nest egg on it but I would use some play money and pull my initial investment out at a certain point.

Kramer (TV investment guy) recommends buying American companies that stand to capitialize on Chinese success to stem you exposure to risk.  Not a bad idea.  Not sure it is an option with Lifan though.

[skadamo]

I have started watching CCTV (Chinese Central Television, English version). They are the up and comers in the world, at least for the last few years

Almon

i'll have to check that out.