The European-based private equity firm Permira is planning to
set up an office in Shanghai or Hong Kong to prepare for direct
investment in China, eyeing the country's growing market.
Paolo Colonna, chairman of Permira, told Shanghai Securities
News that the firm intended to invest in merchandise
distribution for China's big- and medium-sized enterprises with its
worldwide sales network.
Marazzi, a ceramic tile company with investment from Permira, is
already selling Chinese-made tiles in the Far East.
Permira was no longer satisfied with indirect investment in
China, according to Paolo Colonna.
Permira normally becomes a company's biggest shareholder when it
invests in Europe. Paolo Colonna said the firm is now seeking to
become majority investors in Chinese companies, but emphasized it
would not meddle in the operation of companies.
He also said his firm sees the potential for growth in both
publicly and privately owned companies.
China has seen more private equity coming into the country with
the rapid growth of Chinese enterprises. The U.S. investment group
Warburg Pincus said private equity investors in China pumped
US$1.07 billion in 2005 up from about US$518 million in 2001.
(Xinhua News Agency April 10, 2007)