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Copper-clad bimetallic conductor products manufacturer Fushi Copperweld (NASDAQ:FSIN) looks set to go private after the company's CEO and Chairman and Abax Global Capital announced an offer to acquire the company for US$11.50 per share in cash. Shares in the company closed yesterday at US$9.10 per share. The offer values Fushi Copperweld at approximately US$434 million.

Mr. Li Fu, CEO and Chairman, Abax Global Capital and their affiliates already control 29.2% of the company's stock, and plan to create a new acquisition vehicle that will fund the acquisition of Fushi Copperweld through a combination of debt and equity capital.

The Nasdaq listed, China focused manufacturer has formed a special committee to consider the offer.

Yesterday the company posted a 40% rise in its third quarter profits, helped by strong copper prices and a rise in sales volumes from its US facility.

For the third quarter, net income was $12.9 million, or $0.34 per diluted share, compared with profits of $9.2 million, or $0.31 per diluted share, in the prior year quarter. These results include expenses of $176,000, as well as net interest income of $154,274.

Adjusted for one-time items, net income was 13 million in the period, or $0.34 per diluted share, up from $7.6 million, or $0.26 per diluted share, in the third quarter of 2009.

Revenues increased 39.5% to $66.5 million, reflecting organic growth on account of copper prices, as well as a 32% increase in sales volumes from the company's US facility, which offset a slight decline in sales volumes within China.

By quarter-end, the company's cash position stood at $117.9 million. Long-term debt totaled $5.9 million, compared to $32.7 million at December 31, 2009.

The company expects adjusted fully diluted earnings per share to be between $0.29 and $0.31 for the fourth quarter, and between $1.25 and $1.29 for the full-year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Abax Global Capital launched a private equity fund in mainland China, Bloomberg News reported.

The Hong Kong hedge fund manager is backed by Morgan Stanley and plans to start the fund in order to invest in companies making environmentally friendly products.

The fund raised about $73 million from Chinese investors, Donald Yang, Abax's Hong Kong-based president, told Bloomberg News. The fund is sponsored by a large Chinese financial institution.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Abax Global Capital, a manager of $900 million of hedge and private equity funds, plans to start a fund for investments in Chinese real-estate projects in partnership with former Beijing-based Merrill Lynch & Co. real-estate fund investment professionals led by Greg Peng, Yang said. It will raise yuan capital from Chinese investors and will target returns of 25 percent to 35 percent from the investments, Yang said.

Chinese investors have committed about 1 billion yuan ($159million) to the fund, which is going through business registration and may hold its first close by the second quarter, Yang said.

Most of the assets in the Abax Global Capital special situations fund are in privately negotiated debt and equity securities, including
fixed-income, structured loans and private equity types of investments, Yang said.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.