Singapore-based Dymon Asia Private Equity (DAPE) is said to have received interest from Malaysia’s Etika Holdings to acquire a stake in its portfolio firm Advend Systems, a vending machine company formerly known as Atlas Vending, according to two people familiar with the development.
Etika Holdings is a group company of Japanese beverage major Asahi Group.
DAPE is said to be lining up its exit from Advend Systems since early this year, and the firm is being advised by Daiwa Capital Market for the stake sale process, the people mentioned above said.
The PE firm is believed to own 70 per cent stake in Advend Systems, which it acquired since 2014, said one of the people mentioned above. Meanwhile, the valuation of this deal is expected at around S$67 million ($48.4 million).
Etika Holdings is the manufacturer, distributor, and marketer of soft drink brands such as Pepsi, Miranda, 7UP, Revive Isotonic, Gatorade, Lipton, Tropicana, MUG and Mountain Dew. It also produces other brands such as WONDA Coffee, Calpis, Chill Asian Drinks, Bleu Water, Kickapoo, Goodday Milk, and Dairy Champ, according to information on its website.
Strategic suitor, Etika Holdings, could be interested in Advend Systems as the company is also in the vending machine business. Advend is said to operate a total of 6,800 vending machines in Singapore, Malaysia and Hong Kong. “Around 4,000 of those machines are located in Malaysia,” the first person added.
However, there is no agreement that has been reached between the two companies yet and any transaction is expected to close before the end of 2019, said the second person.
A DAPE executive and a Daiwa spokesperson declined to comment on the matter when DealStreetAsia contacted them. Meanwhile, a message sent to Etika Holdings has not received a response yet.
DAPE invested in Advend Systems from its first fund, Dymon Asia Private Equity (SE Asia), which was launched in October 2012. DAPE’s first fund achieved a final close of S$300 million in commitments, according to the company’s website. DAPE raised a $450-million second fund in 2018.
The PE firm is currently seeking an exit to monetise its investments from the first vehicle, according to the second person. DAPE made 12 investments from its first fund and has scored four exits so far.
DAPE exited Asia Integrated Facility Solutions, a healthcare facilities management company, in 2016, and Goodrich Global, a distributor of wallpaper and interior furnishing products, in 2017. In 2018, it divested its interest in Wah Loon Engineering, a mechanical and engineering services provider. The firm has also exited from Singapore’s pre-school operator Nurture Education Group.