Proskauer Advises RRJ Capital on China Biotech Investment
September 11, 2012 (New York and Hong Kong) – Global law firm Proskauer served as counsel to private-equity fund RRJ Capital Ltd. in its investment in a medical diagnostics company in China. The target makes testing kits for diseases, including hepatitis and cervical and lung cancer, using molecular diagnostics, an area of preventative medicine that Beijing is keen to develop.
The deal is the latest that Proskauer has acted on for RRJ Capital. In June 2011, Proskauer served as counsel to the fund in its investment in AAB International Holdings Ltd., a private Chinese diaper maker.
The transaction is a first for RRJ Capital in China’s health care sector. Previous deals by RRJ Capital – which is based in Hong Kong and focuses on private equity investments in China and South-East Asia – have concentrated on the energy sectors.
In May 2012, RRJ Capital and Singapore state-owned investment firm Temasek Holdings Pte. Ltd. together invested $468 million in Cheniere Energy Inc. to process and export liquefied natural gas from the U.S. Gulf Coast. In April 2012, the fund invested $341 million in Hong Kong-listed crude-oil and natural-gas company Kunlun Energy Co. as part of a share placement. In April 2011, RRJ Capital, along with Temasek, purchased a 70 percent stake in Texas-based Frac Tech Holdings LCC, a major provider of pressure-pumping equipment for the U.S. oil-and-gas industry.
RRJ Capital was founded in March 2011. It raised $2.3 billion for its first fund in March last year and is currently raising $5 billion for its second Asia-focused fund.
The Proskauer team was led by Consultant Jay C. S. Tai and included Associates Rose Zhao and Lei Cui, all from the firm’s Corporate Department and all based in Hong Kong.