South and Southeast Asia-focused Navis Capital has made an offer to acquire all the shares of Singapore-listed Eng Kong Holdings, a logistics and integrated container services company with operations in China and Southeast Asia, for a consideration of S$77.4 million (€44.9 million; $55.2 million).
The firm is offering S$0.295 per share, which is a 37.21 percent premium over S$0.215, the last traded share price prior to the announcement of the offer, the firm said in a statement.
Navis has made a voluntary conditional cash offer for all the issued and paid up capital of Eng Kong, and has received irrevocable undertakings from substantial shareholders who are also directors of the company and who collectively own about 174 million shares representing approximately 66.39 percent stake in Eng Kong, to sell their shares.
The firm intends to de-list the company upon a successful close of the transaction, it said in a statement. It is making this investment from Navis Asia Fund V, which closed on more than $1 billion in 2007.
Established in 1978, Eng Kong has set up a fully integrated container service centre supporting the high growth logistics infrastructure industry in the region. A few of the company’s clients include shipping lines, container leasing and major freight forwarding companies. The company has operations in Singapore, Malaysia, Thailand, China and Hong Kong SAR.
PrimePartners Corporate Finance is the financial adviser to Navis.
This will be Navis’ third involvement in the buyout of a Singapore-listed company. In 2006, the firm was part of a consortium that acquired Mentor Media, and it privatised King’s Safetywear in 2008.
Founded in 1998, Navis is focused on investments in South and Southeast Asia. It is currently in the market for Navis Asia Fund VI, which held a first close on a little under $400 million in July 2009. The firm originally had a $1.25 billion target, according to sources, but it was subsequently lowered to $1 billion. Navis has raised more than $1 billion for the fund and is likely to close the fund within a month, a source told PEI Asia.
Navis declined to comment on fundraising.
In January, Navis acquired a stake of approximately 75 percent stake in Kuala Lumpur-based Alliance Cosmetics Group, a cosmetics and personal care products distributor, for about $30 million, marking its maiden investment from Navis VI.
Since inception, Navis has made about 40 acquisitions and manages almost $3 billion in capital.