MAY 2015

FOOD & BEVERAGE

Dairy

Race for control of VINAMILK (VN) raise concerns over management

VINAMILK, the largest dairy farm in Vietnam, experienced direct confrontation between the board of directors & the largest shareholder, STATE CAPITAL INVESTMENT CORPORATION, as both parties have different corporate governance perspectives. The state shareholder, which holds 45 % stake in the listed company, is trying to form alliance with foreign investors to gain control of the firm.

VINAMILK’S profit after tax is USD 279 M

21 May 2015 / Deal Street Asia


Beverage

THAI COCONUT forms partnership with MEI YI JIA (CHN) convenience stores to tap on China market

THAI COCONUT, Thailand-based coconut product manufacturer & exporter, has signed a partnership with MEI YI JIA, a convenience store chain in Dongguan province, to tap on China market. This move aims to boost sales revenue from USD 2 M last year to USD 6 M this year. MEI YI JIA also plans to expand to other provinces such as Fujian, Guangzhou & Shenzhen.
THAI COCONUT plans to raise fund of more than USD 30 M through selling 150 M shares in IPO.

13 May 2015 / Deal Street Asia


Food Ingredients

GIC arm (SGP) to acquire 11 % of CENTURY PACIFIC FOOD (PHI) for SGD 76 M

ARRAN INVESTMENT PTE LTD, an affiliate of GIC PTE LTD, will acquire 11 % of CENTURY PACIFIC FOOD (CNPF), a Philippine food company via an exchangeable debt deal. ARRAN INVESTMENT provided CENTURY PACIFIC GROUP, parent company of CNPF, up to about SGD 76 M loan. The principal and interest can be converted into 245 M issued and outstanding shares of CNPF.

Est. EV/Revenue = 1.5x

7 May 2015 / Deal Street Asia

NEO GROUP (SGP) to acquire 55 % of THONG SIEK (SGP) for SGD 7 M

NEO GROUP, a major catering company, plans to acquire a 55 % equity stake in THONG SIEK HOLDINGS, a Singaporean manufacturer, distributor & retailer of surimi-based seafood products for SGD 7M.
In Q4 2014, the net tangible assets of THONG SIEK GROUP were valued at SGD 4 M & net loss of the group for FY2014 was SGD 0.5 M. THONG SIEK GROUP will establish a marketing office in the UK to achieve entry into Europe, the Americas & Hong Kong.

NEO GROUP valued THONG SIEK GROUP to be between SGD 12 M to 24 M
Est. EV/Revenue = 0.4x

14 May 2015 / Deal Street Asia

PAN FOOD (VN) ups stake in BIBICA to 42 %

PAN FOOD, a subsidiary of agriculture-focused firm PAN PACIFIC, has upped its stake in BIBICA, Vietnam’s second biggest confectionery company, from 21 % to 42 %. With this, PAN FOOD is the second largest shareholder in BIBICA, after Korean conglomerate LOTTE, which holds 44 %.

PAN PACIFIC and LOTTE are competing to take over BIBICA

14 May 2015 / Deal Street Asia

METRO (GER) & BRIGHT FOOD (CHN) eye private equity owned CLASSIC FINE FOODS (SGP)

German retail group METRO and China’s state-owned BRIGHT FOOD GROUP are in talks to buy private equity-owned CLASSIC FINE FOODS in a deal potentially worth USD 300 to 400 M, including debt. METRO is aiming to expand its Asian operations. BRIGHT FOOD has sales of about USD 19 Bn and is on a global acquisition spree. The auction of CLASSIC FINE FOODS has attracted interest from DKSH and several other private equity firms.

Buyout fund EQT bought CLASSIC FINE FOOD in 2011 and 2015 projected earnings is USD 25 M.

8 May 2015 / Reuters


Retail

MITSUI & CO (JPN) picks up minority stake in retailer TRIPLE (SGP)

MITSUI & CO, one of Japan’s largest general trading companies, has invested in Singapore apparel retailer, TRIPLE, taking a minority stake in the company. TRIPLE holds exclusive distributorship for American sportswear brand UNDER ARMOUR in nine Southeast Asian countries. TRIPLE opened 11 UNDER ARMOUR stores in Singapore, the Philippines, and Malaysia. It plans to enter Indonesia, Brunei, and Vietnam.

27 May 2015 / Deal Street Asia

HEALTH & BEAUTY

Healthcare

Q&M DENTAL (SGP) to buy 8 Singapore clinics for SGD 20.3 M

Q&M DENTAL GROUP, one of the largest private dental healthcare group in Singapore, has reached a deal to buy 8 Singapore dental clinics for SGD 20 M. It will pay SGD 11 M in cash and SGD 9 M in shares. The deal will see total profit target of about SGD 16 M. In Apr 2015, Q & M DENTAL had reached a deal to buy TP DENTAL SURGEONS for SGD 28 M.
Upon completion of all acquisitions, Q & M DENTAL will have 69 clinics and an increase in its team of dentists, from 180 to 225.

13 May 2015 / Deal Street Asia


Pharmaceuticals

FORTIS (IND) to sell RADLINK unit in Singapore for USD 83 M to FULLERTON HEALTHCARE

India’s FORTIS HEALTHCARE has reached a deal to sell Singapore unit RADLINK-ASIA PTE LTD, largest provider of outpatient diagnostic imaging, nuclear medicine and leading radiopharmaceuticals, to FULLERTON HEALTHCARE for USD 83 M. The sale happened at a lower valuation as compared to the fallen deal last year where FORTIS HEALTHCARE would sell RADLINK-ASIA to Malaysian firm IHH HEALTHCARE for USD 108 M as Competition Commission of Singapore has blocked the deal.

4 May 2015 / Deal Street Asia

ENGINEERING & CLEANTECH

Engineering & Construction

AAF (UK) EYES IMECO (VN)

UK-based machinery firm, AAF, wants to fully acquire Vietnam-based MECHANICAL AND INDUSTRIAL CONSTRUCTION (IMECO), a company that produces and installs mechanical products and industrial equipment, for USD 8 M. IMECO has less than 4 M outstanding shares trading at USD 0.38 on UPCoM (unlisted companies) market, while AAF offer values IMECO shares at about USD 2 per unit. IMECO registered capital stands at more than USD 1 M and targets to make profits of USD 485 K

EV/Revenue = 1.14x

8 May 2015 / Reuters


Water Treatment

CNA GROUP (SGP) in talks to sell China water treatment plant, shares surge 50 %

Singapore-listed engineering firm, CNA Group, entered into discussion with the Dongying Economic Development Zone Management Committee (DMC) to transfer the waste water treatment plant to an undisclosed third party. CNA Group has been negotiating with DMC for a higher tariff for its plant but to no avail. CNA planned to spin off its water treatment business into a separate entity and list the same.

13 April 2015 / Deal Street Asia


Renewable Energy

CWT (THA), ZERO WASTE (THA), LAWI ENGINEERING (THA) form JV for renewable energy biz

Thailand’s leading manufacturer of leather-finished products CHAI WATTANA TANNERY GROUP, set up two joint venture firms with ZERO WASTE COMPANY and LAWI ENGINEERING to run the first waste-to-energy plant in north of Thailand. CWT will hold 65 % stake in both companies while ZERO WASTE and LAWI ENGINEERING hold 17.5 % each. Total investment will be around USD 44 K and take 2 years to complete. 70 % of the funding will come from borrowing from financial institutions and 30 % from equity.

6 May 2015 / Deal Street Asia

NEW TECH

Payment Solutions

PAYPAL’S Co-Founder Peter THIEL to invest in CITRUS PAY (IND)

Mumbai-based CITRUS PAYMENT, a mobile payment startup is likely to raise around USD 25 M from PAYPAL’S Co-Founder Peter THIEL, along with existing investors SEQUOIA, ECONTEXT ASIA AND BEENOS. Peter THIEL will invest around USD 3 M in his personal capacity. CITRUS PAYMENT is used by INDIOGO, GO AIR and AMAZON INDIA, where it claims to process transaction worth USD 1.5 Bn annually. The company aims to expand to 70 M consumers and over 25 K merchants from 3500 merchants currently.

11 May 2015 / Deal Curry


Internet

Korean digital agency YDM GROUP buys majority stake in GUSHCLOUD (SGP)

YELLO DIGITAL MARKETING GROUP has acquired a majority stake in digital marketing agency GUSHCLOUD. Under the deal, GUSHCLOUD CEO Vincent Ha and co-founder Althea Lim will retain minority shareholding. This is YDM’s 17th acquisition, and its first in Singapore.
YDM is part of YELLO MOBILE GROUP, a mobile media company with 54 companies and 33 services under its wing.

2 May 2015 / Private Equity Wire

LUXURY & LIFESTYLE

Furniture & Accessories

LBO FRANCE in exclusive negotiations with EQUISTONE for the sale of AVERYS

LBO FRANCE is in exclusive negotiations with EQUISTONE for the sale of AVERYS, a European producer of storage systems, racks and metallic furniture. Currently, AVERYS experience strong growth in Asia and two-thirds of its activity outside Europe. AVERYS is considering targeted acquisitions to strengthen its position in key European markets and stepping up development outside Europe.
In 2014, AVERYS had estimated sales of EUR 360 M.

2 May 2015 / Private Equity Wire, EQUISTONE Press Release


Fashion

LE SLIP FRANCAIS (FRA), an underwear brand, raises EUR 2 M from 360 CAPITAL PARTNERS

LE SLIP FRANCAIS, a French underwear brand for men & women, has raised EUR 2 M from 360 CAPITAL PARTNERS, a European investment fund. After a recent opening in Hong Kong (in April 2015), the company projects to expand LE SLIP FRANCAIS to Japan, Singapore, South Korea, Taiwan & USA.

In 2014, LE SLIP FRANCAIS had a revenue of EUR 1.5 M.

4 May 2015 / Le Figaro


Food Service

FOODPANDA raises USD 100 M more led by GOLDMAN SACHS, takes total amount raised to over USD 310 M

FOODPANDA GROUP, ROCKET INTERNET’S online food ordering service, had raised additional USD 110 M led by GOLDMAN SACHS. Its previous funding round was 50 days before where it had raised USD 110 M as well.

FOODPANDA has partnered with more than 45000 restaurants across 40 countries, being a market leader in 32 of those countries.

1 May 2015 / Deal Street Asia