Malaysia’s Ekuinas exits homegrown desserts firm Coolblog

Photo from Flickr, Flazingo Photos

Malaysia’s government-linked private equity firm Ekuiti Nasional Bhd (Ekuinas) has divested its entire 60 per cent holding in homegrown desserts and beverages firm Coolblog Apps Sdn Bhd to Singapore-based PE firm Archipelago Capital Partners.

The divestment, which was based on an equity value of RM75 million ($18.13 million), generated an internal rate of return of 6.4 per cent and a money multiple of 1.4 times the capital invested, according to a statement on Friday. 

The latest divestment closely follows Ekuinas’s exit from halal meat-based food maker PrimaBaguz Sdn Bhd  to US-based Johnsonville International LLC for an enterprise value of RM175 million ($41.96 million) last month.

“Our investment in Coolblog has reached its maturity for divestment and we have implemented our value creation plan. It is also part of our careful investment strategy to secure positive IRR, in line with our move to crystallise our assets under Ekuinas Direct (Tranche II) Fund,” Ekuinas CEO Syed Yasir Arafat Syed Abd Kadir said.

Ekuinas invested in Coolblog in 2014.

During its investment period, the company streamlined its operational processes and systems, expanded into mass-market regions, as well as enhanced its product offerings and marketing strategies, Ekuinas said. Coolblog currently has over 270 stores in Malaysia.

In August 2014, it was reported that Ekuinas’s retail F&B arm, Integrated Food Group Sdn Bhd, invested a sum of RM50.8 million ($12.28 million) for the 60 per cent equity in Coolblog.

“..With the growing population and rising youth demographic in Malaysia, we see more opportunities to grow the business. Archipelago has been looking for the right entry-point to strengthen our regional F&B and consumer portfolio, and the opportunity to invest in Coolblog is timely,” Archipelago CEO Jovasky Pang said, adding, “moving forward, we will leverage our sizeable and established network across Southeast Asia to execute our vision and strategy for the company.”

Archipelago Capital is a private equity investment firm that invests in small to mid-market companies in Southeast Asia. It is focused on consumer goods & services, financial services and industrial and logistics sectors.

 

Singapore Reporter/s

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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.