South Beauty gets suitor from Beijing

South Beauty Group, a homegrown restaurant chain, has secured a 300 million yuan investment from venture investors, despite the current economic downturn.

CDH Investments, a Beijing-based private capital firm, will invest 200 million yuan, South Beauty said in a statement. China International Capital Corporation (CICC), an investment bank in which Morgan Stanley holds a 34 percent stake, will invest 100 million yuan. The two investors combined will hold less than 10 percent of the restaurant chain.

The valuation of the deal is close to an initial public offering, which prices the company more than 10 times its 2007 earnings, said Rong Xuejing, the company's spokeswoman.