Baring Private Equity Asia is exploring a combination of two Hong Kong-based business services firms it owns, Tricor and Vistra, according to insiders.
BPEA is working with advisers on a merger that could value its two portfolio companies at HK$54.6 billion to HK$62.4 billion, they said.
The pan-Asian buyout firm – which itself is merging with Swedish investment firm EQT – has notified Tricor and Vistra’s creditors about the merger plans.
To help set a valuation for the merged business, BPEA is weighing selling a minority stake in Vistra, the larger of the two firms.
BPEA completed its purchase of Tricor from Permira in June in a deal that valued the company at about HK$21.84 billion including debt.
It then started preparations for a merger of the two business services firms, after having considered a potential sale of Vistra earlier.
Vistra had drawn preliminary interest from other private equity firms, including Warburg Pincus, Bloomberg News has reported. A deal could have valued Vistra at HK$31.2 billion to HK$39 billion, insiders said at the time.
According to their websites, Vistra, founded in 2006, is a fund administrator and corporate service provider, while Tricor, founded in 2000, provides services like investor and initial public offering services, human resources, corporate trust and so on.
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