Hong Kong-based HSBC Private Equity Asia has offered S$119.6 million ($86.5 million; €55.3 million) to delist apparel producer Sing Lun.
The bid is worth $0.46 per share, which gives shareholders an 18 percent premium over the last transacted share price before the offer document was released on 30 March.
Sing Lun Holdings makes and trades textiles and apparel. It operates six manufacturing plants in Malaysia, Singapore and Sri Lanka, and supplies apparel to clothing brands such as GAP, Eddie Bauer, Banana Republic, FILA and Polo Ralph Lauren. Sing Lun also makes investments in equities and debt securities.
According to the offer document Sing Lun’s founder shareholders have agreed to sell their shares, amounting to a 53.48 percent stake. Sing Lun’s chairman Patrick Lee, and its chief operating officer Mark Lee Kean Phi, will be appointed as directors of the privatised company following the acquisition.
The investment will be made from HSBC Private Equity Fund VI, a $1.25 billion fund that makes expansion stage and buyout investments in Greater China, India, South Korea and Southeast Asia.
DBS Bank of Singapore is advising HSBC on the deal.