Kohlberg Kravis Roberts has made a proposal to buy SGX-listed Goodpack in what could be a S$1.39 billion ($1.1 billion; €817 million) deal, according to a joint statement.
The firm has offered S$2.50 per share in the business, a 44.7 percent premium over Goodpack’s 12-month volume-weighted average price up to 18 March 2014 – the day prior to the announcement by Goodpack regarding a possible transaction.
The investment will be the first privatisation from KKR’s Asia Fund II, which closed last July on $6 billion, according to the firm.
The buyout will be backed with $600 million to $650 million of underwritten debt from Credit Suisse, Goldman Sachs and Morgan Stanley, Thomson Reuters publication Basis Point reported on Tuesday, although KKR would not provide clarification on financing.
“Goodpack is a best-in-class provider of packaging and logistics solutions. We look forward to partnering with David and his management team in realising Goodpack’s potential and accelerating its growth by leveraging KKR’s extensive relationships in new verticals and unique value creation resources, such as KKR Capstone, which works very closely with our portfolio companies to drive operational improvements,” Ming Lu, head of KKR Southeast Asia, said in a statement.
David Lam, executive chairman of Goodpack, added, “We are delighted to receive KKR’s proposal to acquire the company by way of a scheme of arrangement. The consideration price of S$2.50 per share provides an opportunity for Goodpack shareholders to realise their investment in Goodpack shares for cash at a significant premium to the historical trading prices of the company’s shares.”
Lam will sell his 32 percent in the company as part of the transaction.
KKR continues to deploy capital from its $6 billion regional fund, actively pursuing opportunities across the Asia Pacific region.
Last week, KKR bid $3.1 billion for Australia’s Treasury Wine Estates, although the bid was rejected by the target company after the firm had allegedly breached confidentiality by approaching shareholders about the investment, Private Equity International reported earlier.
KKR declined to comment on the matter further than a statement it issued to the Australian Stock Exchange.
The firm confirmed the preliminary offer made last month, adding, “KKR has not executed a non-disclosure agreement with TWE, and access to company records per our requests has not been provided. In the last week, KKR advisers held discussions with certain shareholders of TWE on a wall-crossed, confidential basis and subject to appropriate confidentiality protocols.”