Singapore :  CMIA China Fund IV L.P., a private equity fund managed by CMIA Capital Partners, and China Merchants Technology Holdings, a leading Chinese State-Owned Enterprise, have together invested US$23 million in the successful privatization of China Farm Equipment Limited (Bloomberg Code: CFE:SP)(“CFE”), a company publicly listed on the Singapore Exchange.

CMIA Capital Partners is a private equity firm focused on investment opportunities in China and Southeast Asia. The CMIA China Fund IV L.P. is CMIA’s fourth private equity fund and is focused on control and growth capital investment opportunities in China, particularly in China’s agriculture, agribusiness and food sector.

CFE is a leading agriculture machinery manufacturer in China and engages in the design, development, production, and sale of farm equipment and diesel engines. CFE’s products include combine harvesters, rotary plough machines and components, and soil tillages, as well as air cooling and water cooling diesel engines. CFE sells its products through distributors in China, and also exports its products to Vietnam, Myanmar, Thailand, and Bangladesh.

“The farming equipment space is a fast-growing sector in China and will benefit from China’s drive to accelerate the modernization of its agricultural sector. CFE is a leading agriculture machinery manufacturer in China with an experienced and proven management team, a well-known brand, an established distribution network and a resilient R&D effort. CFE is also a leader for track-based harvesters in the Hunan and Jiangxi provinces. We look forward to a close partnership with CFE’s management as we work together to realize the potential of its business,” commented Mr. Lee Chong Min, Managing Partner of CMIA Capital Partners.

Mr. Wang Shu Ping, Group Founder, Chairman and CEO of CFE adds “I am pleased to be working in partnership with CMIA for this very important corporate milestone for our company. CMIA has a successful track record investing in and working with companies in China and has a good understanding of China’s agriculture sector. We look forward to leveraging on CMIA’s strong network and expertise in China to further develop our business.”

Ms. Zhu Jinhong, Investment Director, China Merchants Technology Holdings, added “China’s agricultural machinery industry is a high-growth sector in China and strategic to China’s efforts towards modernizing its agriculture sector. According to China’s Ministry of Agriculture, China’s agricultural machinery sector grew at a CAGR of 25% over the past four years and is expected to continue its robust growth in the foreseeable future, backed by favorable macroeconomic and industry trends such as China’s trend towards larger scale farming as well as favorable government policies and incentives. In particular, according to China’s 5-year Plan for the period 2010-2015, China forecasts its agriculture machinery industry to grow from RMB 280 billion in 2010 to RMB 400 billion by 2015”.