Boutique Perth-based investment group Ayr Capital Corporation rubbed shoulders with resource heavyweights Rio Tinto Iron Ore, Shell and Yilgarn Infrastructure, which all used this week’s visit to Perth by Chinese president Hu Jintao to highlight their links with Chinese partners.
Shell signed a landmark heads of agreement with PetroChina for the supply of one million tonnes per year of liquefied natural gas from the Gorgon project.
Rio signed sales and mining agreements with Chinese steel producer Sinosteel regarding their Channar iron ore joint venture, while Yilgarn signed agreements with its five Chinese partners in a proposed Mid-West rail and port project.
These agreements illustrate the increasing amount of Chinese investment in Western Australia’s resources sector.
Ayr Capital is looking to take advantage of this trend by establishing an agreement with Chinese investment bank, China International Capital Corporation.
CICC, which is one-third owned by New York investment bank Morgan Stanley, is the first joint venture investment bank in China.
Its head of investment banking, Wei Ding, said CICC had helped to modernise many Chinese companies, including through listings on international stock exchanges.
In recent times it had shifted its focus and was now looking to assist Chinese companies expand internationally.
“They are ready to expand globally and that is why we are moving towards international mergers and acquisitions and joint ventures,” Mr Ding said.
“They have a lot of cash in these big companies, so much that they need to enhance their returns, so we are helping our clients, going all over the world looking for opportunities to grow.”
He said CICC had a limited international network and therefore partnered with local organisations such as Ayr Capital to help it identify opportunities in the resources sector in Australia and Africa.
Ayr Capital managing director Linda Liu Bearne, who was a founder of international college Kingston College, said her group would be the eyes and ears for CICC.
“We feel there is an advantage because we are locals rather than expats. That’s why we feel we have a role to play,” Mrs Liu Bearne said.
Ayr Capital is part of the privately owned Ayr Group, which has interests in mining, infrastructure, energy and real estate.
