KKR to acquire majority interest in NVC Lighting's China Lighting Business
Global investment firm KKR and NVC Lighting announced the signing of a Share Purchase Agreement under which KKR has agreed to set up a strategic partnership with NVC Lighting and acquire a majority interest in NVC Lighting's China Lighting Business for a total equity value of approximately $794M. Following the completion of the transaction, KKR will own 70% of NVC China and NVC Lighting will hold the remaining 30% and receive a cash consideration. NVC Lighting will transfer 100% of NVC China to the Joint Venture co-owned by KKR and NVC Lighting. NVC Lighting will also receive a cash consideration from the transaction. The final settlement of payment is subject to certain adjustments and closing conditions. A Special Dividend not less than HK$0.9 per share will be declared by the Board of NVC Lighting and paid to the company's registered shareholders, subject to the approval and closing of the transaction. NVC Lighting's non-lighting business in China, China ODM business and international business are not included in the transaction and will remain with NVC Lighting. The transaction is expected to close in the fourth quarter of 2019, subject to customary closing conditions and regulatory and shareholder approvals. KKR is making this investment from its flagship Asian Fund III.