Templeton Asset Management has paid an undisclosed amount to buy a 19.3 percent stake in Halcyon Energy, a Singapore-headquartered engineering and construction services provider for the offshore oil and gas industry.
Halcyon, a subsidiary of Halcyon Investment Corporation, owns and operates a group of offshore engineering and fabrication businesses. It recorded revenues of S$127 million (90 million; €61.5 million) last year.
The investment was made via Templeton's third emerging markets fund, a $147.7 million vehicle with an initial term of six years that can be extended to 10 years. The fund primarily makes private investments in public equities and backs unlisted companies throughout the emerging markets.
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The Halcyon investment, which was made in the form of redeemable convertible preference shares, has a five year maturity and gives Templeton active involvement at the board level, Halcyon said in a statement. Mark Mobius, chairman of Templeton Asset Management, said the company will use the capital to expand its operations through organic growth and mergers and acquisitions.
In May, Halcyon was one of the bidders for UK private equity firm 3i’s stake in deepwater mooring specialist Franklin Offshore, reportedly competing with HSBC Private Equity and Actis. However, In June, Reuters reported 3i scrapped plans for a sale of its stake as the bids that came in were lower than expected.
Templeton Asset Management has Asian offices in Hong Kong, Mumbai, Seoul, Shanghai and Singapore. As of August 2009, its emerging markets team managed assets of more than $25 billion.