“Steinway Musical Instruments Inc., the legendary piano maker controlled by U.S. hedge fund billionaire John Paulson, has attracted takeover interest from China Poly Group Corp.,” reads an unsigned Tuesday (8/7) Bloomberg News article. “The state-owned conglomerate is holding preliminary talks about a purchase of Steinway, according to one of the people, who asked not to be identified because the deliberations are private. The piano maker has also attracted other potential buyers…. Steinway should be able to fetch a high valuation given that the company may reach 30 percent to 40 percent annual sales growth in China, according to Shaun Rein, founder and managing director of the China Market Research Group…. ‘Steinway has massive potential in China as consumers love the brand,’ Rein said…. Poly Group started in 1992 as a supplier of defense equipment for the Chinese military. The conglomerate now has operations spanning explosives manufacturing, real estate, mining, cinemas and the arts. The conglomerate’s … Poly Culture Group Corp. … runs a chain of theaters that have hosted musicals like ‘Cats’ and performances by the likes of the London Symphony Orchestra. Paulson’s New York-based investment firm Paulson & Co. agreed to acquire Steinway in 2013 for about $512 million.”
Posted August 8, 2018
