Malaysia’s CMS Opus Private Equity (COPE) has invested $4.5 million (MYR 20 million) in the country’s largest school uniform maker My-Sutera even as it made two investment exits from water meter firm Damini Corporation and logistics provider Delta Express in the first quarter of this year.
In an announcement, the private equity investment arm of Cahya Mata Sarawak said it “had a busy first four months of 2017, successfully finalising a number of investment exits and undertaking of new strategic investments in growing consumer segments.”
The investment in My-Sutera, that has two well known brands “Canggih” and “Ammaro,” is expected to propel it to become the number one producer of school uniforms in Malaysia.
“The investment would also assist the company to further expand its product lines and to enter new markets,” it said.
The investment indicates the firm’s confidence in the consumer market in Malaysia. In fact, COPE has invested in fresh fruits retail chain MBG Fruits picking up a 31.5 per cent stake in the company last year. That was a debut in the retail segment for the private equity firm.
Other than school uniforms, Shah Alam-headquartered My-Sutera also produces corporate uniforms and has embarked into specialised fire retardant material-based uniform for use by fire brigades, military personnel, shipboard engineers, chemical plants and the like.
Meanwhile, with regard to exits, COPE made an exit from its 29.37 per cent equity stake in Damini Corporation on March 31, 2017 via redeemable convertible preference shares. The firm had invested Damini, a major supplier and distributor of water meters and metering solutions, in 2015.
Further, COPE also successfully exited from its effective equity stake of approximately 45 per cent in logistics forwarding and shipping service provider, Delta Express on April 17, 2017. All investments in Delta, which is a subsidiary of Swift Haulage Sdn Bhd, were made via redeemable convertible preference shares.
No financial details were given with regard to the exits.