DLA Piper Advises Aureos China Fund on Major Private Equity Transaction


Beijing (LAWFUEL) – DLA Piper today announced it advised Aureos China Fund LLC (“Aureos”) on its private equity investment into Chinese company Qingdao Land of State Power Environment Engineering Co., Ltd (“QGLD”), a wind energy and environmental protection company. The transaction represents a significant boost for QGLD to further develop its R&D capabilities as well as contribute to new energy utilisation in China.

Aureos, which specialises in investing in China-based enterprises, is a subsidiary of Mauritius-based Aureos Capital Ltd, a private equity fund management company which provides expansion and buy-out capital to unlisted small and mid-cap businesses in emerging markets such as Asia, Africa and Latin America. Since its establishment in 2001, Aureos Capital has established 14 new regional private equity funds, covering more than 50 markets, with total capital commitments of over US $720 million. Pursuant to the terms of the transaction, Aureos will inject cash into QGLD over a period of time.

QGLD is a leader in production of wind energy turbines as well as air purification and water management facilities for power stations with a significant R&D programme. Producing its first large scale 1.5MW turbines in late 2006 for a wind farm in Inner Mongolia, QGLD became the first Chinese company to develop a turbine with power output and capacity based entirely on Chinese proprietary technology. QGLD is ranked 3rd in terms of sales in China in the power plant water-recycling sector, and 20th in the desulphurisation sector where there are growing opportunities for the removal of sulphur from power plant emissions. The company is a major domestic player contributing to China’s reinforced efforts to control energy usage and industrial pollution.

“There is no doubt China is continuing to move environmental issues up the agenda. Aureos’ investment into QGLD is aligned with China’s macro environmental policy and we certainly believe this will help accelerate the country’s green performance,” said Rocky Lee, Partner in the Hong Kong and Beijing office of DLA Piper UK LLP and head of DLA Piper’s Asia Venture and Private Equity Practice.

“With the help of DLA Piper and Rocky’s team and we are very pleased to see yet another successful completion of a very complicated cross-border China deal,” said Steve Wu, the managing director of Aureos in China. “China is a very exciting place for private equity and we are absolutely committed and focused on this market,” said Mr. Wu.

Mr. Lee was the lead lawyer in a team including Chris Terry, Hongling Wang, and Linlin Zhang from DLA Piper’s Beijing office. He added: “Private companies today, whether as investors or operating companies, have a hugely significant role to play in improving the quality of living and environment amid industrial growth particularly in emerging markets.”

“DLA Piper helps clients meet their business goals, build strategic alliances, and navigate the constantly shifting landscape of environmental regulations and policies. Our energy and water sector specialists as well as M&A and private equity experts at DLA Piper provide top quality legal counsel and industry knowledge which are crucial for the success of investments.”

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