Thailand: AAPICO to invest $100m in UK’s auto parts maker

Image from AAPICO website

Thailand’s AAPICO Hitech Pcl has received its board’s approval to invest $100 million in UK-based auto parts maker Sakthi Global Auto Holdings (SGAH), the firm said on Thursday.

AAPICO will spend $50 million in purchasing 2,510 newly issued ordinary shares, equivalent to 25.10 per cent of SGAH. The other $50 million will be a synthetic convertible loan to SGAH with an interest rate of 20 per cent per annum.

However, SGAH needs to complete an internal group restructuring prior to the investment by the end of Q2 2017.

After restructuring, SGAH will consist of manufacturers of automotive components to serve original equipment manufacturers such as General Motors, Continental AG, Maruti Suzuki India Ltd, IIjin Automotive Private Ltd and Ford.

Yeap Swee Chuan, president and CEO of AAPICO, said the company expects the transaction to help it become a global auto parts maker with a new customer base and international distribution channels as well as reduce the risk of depending heavily on the Thai market.

“We will forge a strategic partnership with SGAH and its subsidiaries in India, Portugal, the United States and China to grow our business in the global market,” he was quoted as saying in the filing.

AAPICO will use internal cash of $25 million to fund this investment and the rest $75 million will be credit facilities from TMB Bank and Bangkok Bank with a maturity of five years.

Also read:

Thai auto parts maker AAPICO considers acquisitions in Malaysia, India

Thailand: FPI forms JV with Indian auto-parts maker

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.