S3 Investment Company announced that their Redwood Capital Subsidiary has entered into a long-term agreement with Kensington Cross Ltd. Kensington Cross is a Delaware domiciled boutique investment banking firm, holding offices in Beijing, China, and now will fund private equity transactions. Redwood Capital deals with assisting private Chinese companies to access the U.S. capital markets primarily through reverse mergers into U.S. public companies. The company saw a rise of 160.00% on Tuesday.
Both companies offer existing and potential clients advanced equity and joint venture alternatives transactions ranging from $20 million and in upwards of $100 million (US). Kensington Cross has been expanding its operations into China and Latin America, with current working transactions in Costa Rica and China involving international flag hotels and industrial development projects respectively. Currently, the company has two additional Redwood Capital clients that are being positioned for acquisition and/or reverse merger transactions.
The chairman and CEO of S3 Investment Company, Jim Bickel, commented on the agreement by saying, “Kensington Cross approached Redwood Capital with a number of select private equity deals after having completed an exhaustive due diligence process. That alone generated an internal interest within Redwood to create the alliance between the firms, and we look forward to working with Kensington Cross on the potential deals that they bring.”
Among the aforementioned agreement, Redwood Capital recently participated in a closed acquisition involving Dalian Chuming, a pork processing company with sales reaching USD $70.4 million in 2006, and USD $89.7 million in unaudited sales for the first three quarters of 2007.
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