Hong Kong-based Headland Capital Partners has made a proposal to take private Singapore-listed Kreuz Holdings, a services business for the oil and gas industry, according to a joint company statement.
The private equity firm will offer S$445.6 million (€266 million; $359 million) for the business, based on a share price of S$0.80 per share, representing a premium of 11.1 percent and 39.6 percent over the six-month and 12-month volume-weighted average prices respectively to 1 November, the statement said.
Headland intends to acquire all issued and paid-up shares in the business through its subsidiary SEA9.
Kreuz provides undersea construction, installation, repair and maintenance services for customers in the oil and gas industry. It is a subsidiary of Swiber Holdings, which currently owns 57.5 percent of all shares in the business.
Swiber has agreed to vote in favour of the transaction and to reject any proposals or offers from any potential competing bidders, according to the statement.
Headland is expected to help the business develop and carry out new growth initiatives, such as investing in new vessels to support the business.
“Headland and SEA9 are well positioned to partner with Kreuz to provide resources and strategic input to assist the company in pursuing future growth initiatives,” Paul Kang, senior partner at Headland, said in a statement.
PE targeting Asia's oil and gas sector
Asia’s oil and gas industry and related services have been attractive to private equity firms. Last year, CHAMP Private Equity bought a $190 million stake in Singapore-based Miclyn Express Offshore.
In October, Kohlberg Kravis Roberts landed its first Malaysia deal, investing $200 million in Weststar Aviation Services, which provides offshore helicopter transportation services to the oil and gas industry in Southeast Asia. Earlier this week, Chinese private equity firm HanHong Private Equity, invested $75 million in oil and gas assets in the Central Asian and Caspian regions, owned by Tethys Petroleum, PEI reported earlier.
Headland Capital Partners is a pan-Asian private equity fund with about $3.4 billion in assets under management, according to the firm. The firm spun out of HSBC in 2010, but has been managing funds since 1989 as part of the bank. Since inception, the firm has made 140 investments primarily in Greater China, Southeast Asia, South Korea and India.
The firm is planning to launch its seventh private equity fund by the end of 2013 with a target of $1.25 billion, PEI reported earlier. Its predecessor Fund VI, a $1.34 billion regional fund with a 2008 vintage, is expected to be 75 percent invested by the end of 2013.