Asian private equity firms Hupomone Capital Partners and AIF Capital are set to inject $40 million in abalone producer Oceanus.
product. The company is headquartered in Singapore, with operations in China. It is presently looking to raise $45 million to expand its production capacity and brand marketing activities.
The deal gives the company working capital to expand Oceanus’ farms and enhance downstream activities such as food processing.
The investment, which is subject to due diligence, is structured in the form of a loan and warrants, which have an exercise price of S$0.15 ($0.10; €0.07) per share, he added.
Asia-focused private equity firm AIF Capital has also signed a term sheet seeking to invest $25 million in Oceanus. The investment is subject to due diligence and structured in the form of a loan and warrants with an exercise price of S$0.15 per share, as well.
AIF Capital's investment in Oceanus will be made from AIF Capital Asia III, a $435 million fund that invests in expansion, buyout and special situation opportunities in China, India and Southeast Asia. In June 2008, the fund invested $31 million in BioPlus Life Sciences, a Bangalore-based pharmaceutical company.
Hupomone will invest from its first fund, which closed on $100 million in March 2008. The fund makes growth capital investments primarily in sectors such as healthcare, environment and energy. It targets companies with operations in China and has a preferred deal size of between $10 million to $15 million, according to Chan.
Headquartered in Beijing and Singapore, Hupomone’s past investments include Jiangxi Jinko Solar, a crystalline silicon ingot and wafer maker, and Shanghai Zesun Navigation Electron Technology, a marine navigation radar systems designer and manufacturer.