Hong Kong family behind Chow Tai Fook and New World Development explores buying Varo Energy
- Companies have discussed a deal that could value Switzerland-headquartered Varo Energy at about US$2.3 billion
Hong Kong’s billionaire Cheng family, which controls a real estate and jewellery empire, is exploring a bid for European fuel supplier Varo Energy, people with knowledge of the matter said.
The companies have held talks about a deal that could value Varo Energy, backed by investors including Carlyle Group, at about €2 billion (US$2.3 billion) including debt, according to the people. No final agreements have been reached, and there is no certainty the negotiations will lead to a transaction, the people said, asking not to be identified because the information is private.
Tycoon Henry Cheng Kar-shun has been pursuing acquisitions as he leads family-owned conglomerate Chow Tai Fook (Holding) beyond its property roots. The group completed its first foray into Australian utilities with the 2017 purchase of power producer Alinta Energy Holdings, Bloomberg-compiled data shows. Last month, an arm of the family’s New World Development agreed to buy a Hong Kong insurer for US$2.75 billion.
Reggeborgh, a private Dutch investor, and Vitol Group, the world’s biggest independent oil trader, also own stakes in Varo. In April, the company, which has a head office in Switzerland and is registered in the Netherlands, scrapped plans for an initial public offering due to unfavourable market conditions.
Representatives for Varo, Carlyle, Reggeborgh and Vitol declined to comment. A spokeswoman for the Chengs’s publicly traded retail business, Chow Tai Fook Jewellery Group, said she could not immediately comment on behalf of the family. A representative for their listed property flagship, New World Development, did not immediately respond to emailed queries.
