Northstar in $72m Singapore deal

Jakarta-based Northstar is buying a 50.5% stake in Nera Telecommunications, marking the firm’s first deal in Singapore.

Northstar Pacific Capital revealed it will acquire a 50.05 percent controlling stake in Nera Telecommunications in Singapore with a mandatory unconditional cash offer, according to a firm statement.

The deal was worth S$89 million (€56.8 million; $72.5 million), valuing NeraTel at S$177.3 million. Northstar “has no intention to revise the offer price”, according to the statement.

Acting through its newly-incorporated unit Asia Systems, Northstar is buying the stake from Norway-based electronics and energy company Eltek ASA. This is Northstar’s first deal in Singapore, according to the statement.

“We are pleased that after several months of negotiations, Eltek has chosen Northstar’s offer over other competing options,” Northstar’s Singapore-based managing partner Ashish Shastry said in the statement.

Northstar intends to make an offer to NeraTel's remaining shareholders to secure a larger majority stake in the company, according to a spokeswoman for the firm.

Since its 2003 founding, Northstar has raised three funds for the Southeast Asia region, but has focused its investments in Indonesia, according to PE Asia’s data division. Its most recent fund closed oversubscribed at $820 million last year and is the largest fund raised for Indonesia to date. The Jakarta-based firm currently has $1.2 billion assets under management, and has invested in 20 companies in the region.

Northstar received backing from TPG Capital to form a partnership in 2006, and in 2011 Singapore-based TPG partner Ashish Shastry – the lead partner in the NeraTel deal – joined Northstar as part of the partnership.