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Infinity Private Equity today signed a cooperation agreement with the City of Harbin, in northern China. It will invest $10 million in ten Israeli high-tech companies that are planning to expand in China.
IDB Holding Corp. Ltd. (TASE:IDBH) chairman Nochi Dankner and Ron Lauder attended the signing ceremony in Tel Aviv. Dankner said that he loves China and visited it two weeks ago with his team and family, and that he expects to sign the final agreement for the sale of Makhteshim Agan Industries Ltd. (TASE: MAIN) to China National Chemical Corporation (ChemChina) this week.
Harbin Mayor Lin Duo was also present. He will meet Prime Minister Benjamin Netanyahu and Israeli business leaders.
Infinity and its technology incubator in Harbin will invest an average of $1 million in each company. The investments will be in the form of venture capital loans, in exchange for holdings in the companies. The participating companies will receive a range of free benefits from the Harbin Municipality, including offices and manufacturing facilities, assistance in registering intellectual property, accounts, legal services, and personnel.
Infinity also signed a memorandum of understanding (MOU) with BDH Group subsidiary Feng'ao Ltd., which focuses on companies' business opportunities outside of China. Infinity expects to sign more agreements of this kind soon.
Infinity managing partner Avishai Silvershatz said, "Many companies want to enter the Chinese market, but don’t know where to begin. This program not only offers a package of benefits, it has an interest in helping companies developing, adapting, and marketing their products in China."
Framework agreements were signed today with BotanoCap Ltd., Innovative Implant Solutions Ltd., Sonarium Medical Ltd., and Rotec Reverse Osmosis Technologies Ltd. A shareholders agreement was signed with Chinese electrical products company Codo. A separate framework agreement was signed with Yissum Technology Transfer Company of the Hebrew University of Jerusalem.
Harbin, the capital of Heilongjiang Province, has a population of 10 million. It had a strong Jewish community from the late 19th century through the end of World War II, which numbered 25,000 people at its peak. Former Prime Minister Ehud Olmert's grandfather is buried in the city.
"I understand that Israel is strong in high tech, and green, environmental, and agricultural technologies," Duo told "Globes". "I am sure that we have a lot of potential for cooperation in these fields."
"Globes": Do you have agreements with other countries?
Duo: "IDB and the City of Harbin have set up a commercial, science, and technology cooperation program. We have agreements with 100 countries, but we are sure that cooperation with Israel, IDB, and Infinity is an important part of our cooperation network, perhaps because there was once special cooperation and brotherhood between the Jewish community and Harbin."
What companies are you seeking?
"We want companies with new initiatives, especially in high tech, IT, and green technology, but also in pharmaceuticals and electronics. Harbin is a strong city and it has proven R&D capabilities. We want to cooperate with Israeli companies and help Israeli businesses find investment opportunities in China."
Infinity manages $700 million in 12 funds, 10 of which are in China. It is a partner with IDB, CSVC, and the China Development Bank.
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