Blackstone Group and MBK Partners are planning for Singapore initial public offerings for the properties the two private equity companies individually own in Taiwan and India.
Blackstone is thinking about the IPO of Moser Baer Projects Pvt Ltd., an Indian energy company. A Reuters report said that one decision for consideration is listing the enterprise as a business trust.
In 2010, Blackstone spent US $300 million in Moser Baer to acquire an important minority share in the unlisted energy company.
On the other hand, MBK Partners sought the services of Morgan Stanley and Goldman Sachs for a business trust IPO of China Network Systems Co (CNS). The deal for Taiwan's largest cable operator is valued at US $1 billion and is anticipated by the second half of the year.
Business trusts are prevalent among companies since they are able to accumulate cash without giving up control. A business trust model allows the trust to market units to investors although the control of the company remains with the trustee manager. Usually, the establishing trust's affiliate is designated as trustee manager.
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