SHANGHAI, Aug 3 (Reuters) - Chinese private equity firm Hony Capital, a unit of Legend Holdings , said on Wednesday it had completed a restructuring of China Yaohua Glass Group Corp after paying $100 million for control of the struggling glass maker and bringing in IFC as an investor.
The revamped Yaohua Glass, 60 percent controlled by Hony and 10 percent owned by IFC, a unit of the World Bank, aims to become a globally competitive glass maker with more than 5 billion yuan ($776.7 million) in annual sales by the end of 2015, Hony said in a statement.
The local government of Qinhuangdao, where Yaohua Glass is based, owns the remaining 30 percent stake.
"Hony has done quite a lot these years in restructuring state-owned enterprises (SOEs), and has helped reinvigorate quite a few SEOs," Hony CEO John Zhao said in the statement.
Major Chinese private firms including Hony and Citic Private Equity Funds Management Co have been leveraging their strong government relationship and local knowledge in competing for deals with global buyout firms such as Blackstone and Carlyle in China's hot private equity market.
Hony's successful investments include its restructuring of state-owned machinery maker Changsha Zoomlion Heavy Industry Science & Technology Development Co and CSPC Pharmaceutical Group Ltd.
Hony was selected by the local government to restructure Yaohua Glass three years ago, to help revive the nearly 90-year-old glass maker, once regarded as the "cradle of China's glass industry."
Hony has helped streamline Yaohua's business, relocated factories and planned new investments, part of efforts to build it into a leading glass maker in China and the rest of the world, the company said. ($1 = 6.438 Chinese Yuan)