Actis backs Malaysian aluminium company buyout

The emerging markets private equity firm has acquired Teknicast in what is its second management buyout in Malaysia's aluminium sector and third overall in the country.

Actis, the emerging markets-focused private equity firm, has supported the management buyout of Teknicast, a Malaysian aluminium die-casting product manufacturer. The firm is partnering with the company management, led my managing director U Chang Eng, and has not disclosed the size of its investment.

Teknicast manufactures aluminium die-casting products used mainly in the oil and gas industry. The company has annual revenues of RM140 million ($41 million; €28 million). Its clients include companies in the US, Japan, Malaysia and Europe.

The company is looking to expand its manufacturing scale. The firm said in a statement that the market for aluminum products remains strong despite the economic downturn, owing primarily to rising demand in countries such as China and India.

Actis has previously backed two management buyouts in Malaysia. In 2007, it invested $75 million to support the management buyout of Mivan Far East, which designs aluminium formwork for the construction industry. It also led the buyout of Unza Holdings, a manufacturer of personal care products, with an investment of $100 million in 2004.

Earlier this year in August, Actis executed a PIPE deal with an investment in Tunisia's Poulina Group Holdings, a business conglomerate listed on the Tunis Stock Exchange.

In the same month, the firm led a consortium of investors to acquire Johannesburg-based Alstom South Africa, an energy engineering company.

Actis manages $1.3 billion of funds in Asia. It has 40 professionals in the region based out of offices in China, India, Malaysia, Pakistan and Singapore.