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.