ShawKwei and Partners-backed offshore and marine services firm Gaylin Holdings Ltd has completed a $100-million investment and debt restructuring organised by the private equity firm that has now increased its stake in the Singapore-listed company to 76 per cent.
The move seeks to provide loss-making Gaylin with “financial stability and positioning it for future growth”, an announcement said Tuesday.
As part of the restructuring, ShawKwei has purchased new Gaylin shares worth $52 million (SG$68 million). Together with the equity investment, Gaylin restructured bank debt facilities totalling $48 million (SGD64 million) by extending repayment dates and adjusting covenants. For the restructuring of bank loans, UOB, OCBC, CIMB, and RHB were involved as the largest lenders to Gaylin.
A company with a 44-year history, Gaylin is a specialist provider of equipment, services, and solutions to both the oil and gas and the maritime industries. Founded in 1974 by the Teo family, it was listed on the Singapore Stock Exchange in 2012. Headquartered in Singapore, it has operating subsidiaries in Dubai, Azerbaijan, Kazakhstan, Malaysia, Vietnam, Indonesia, China, Korea, and Scotland.
The firm saw its losses widen in the third quarter ended December 31. It reported a loss of S$2.61 million, a drop of 29.8 per cent compared to the same period a year ago. At the same time, its revenue also fell during the period, largely on the back of a still-weak oil and gas market.
“The equity and debt financing provides long-term stability for Gaylin and will underpin sales growth through existing operations as well as attracting potential acquisitions of similar businesses. Gaylin is well established as an industry leader across its 10 international locations in Asia, the Middle East and Europe,” said ShawKwei Founder Kyle Shaw who has now been appointed Chairman at Gaylin.
Further, Gaylin announced two new senior appointments to drive its growth plans — James Parsons, the new Global Managing Director, and Victoria Yong, Senior Vice President of Finance. While Parsons brings extensive experience and knowledge of business transformation and operations within the multinational maritime and oil and gas industries, Yong will provide strong financial leadership experience to Gaylin in her new role, a statement said.
ShawKwei, an investor in Asian mid-market manufacturing, industrial, and service companies, had acquired a majority stake in Gaylin Holdings for S$68 million ($50 million) through its wholly-owned unit PeakBayoi in October last year. The investment was made through its ShawKewi Asia Value Fund.
The private equity firm largely makes investment bets in companies with revenues between $50-800 million. Other recent investments by ShawKwei include China’s adhesive tape manufacturer YongLe Tape, precision engineering company Beyonics, and Amos, a provider of supplies, services, and solutions to international shipping fleets and oil & gas companies.