MY Dealbook: OSK exits Green Packet; Eversendai buys 70% in S-Con; Daya Materials sells 17% in unit

OSK Ventures International's website.

Malaysian firms announced a slew of stake changes over the past week with venture firm OSK Ventures selling off all its shareholding in Green Packet, Eversendai buying S-Con Engineering of Thailand and Daya Materials selling stake to a native-controlled firm for strategic reasons.

OSKVI hives off stake in Green Packet for $7.9m

OSK Ventures International Bhd (OSKVI) has hived off its entire 15.92 per cent stake in wireless networking and telecommunications company Green Packet Bhd for MYR32.97 million ($7.87 million).

The venture capital firm told Bursa Malaysia in a filing that its unit OSK Technology Ventures Sdn Bhd has disposed of the 109.895 million MYR0.20 shares, priced at MYR0.30 each. The disposal was done through direct business transaction and was expected to result in a MYR1.1 million ($260,000) loss at OSKVI group level.

The firm explained that based on the relatively low trading volume and marketability of the sale shares, any disposal of a large quantity of the sale shares in the open market might cause material and adverse effect to their market price.

“In light of the above, we believe the disposal provides a good opportunity for OSK Technology Ventures to harvest the value of its investments in Green Packet Bhd and to dispose its shareholdings in Green Packet at a premium over its recent market prices amidst low daily trading volume recorded by Green Packet over the preceding few months,” OSKVI said.

Cash proceeds from the disposal would provide the OSKVI group additional flexibility in managing its funding requirements for future growth and reinvestment into other potential high growth business opportunities, it added.

Eversendai to acquire 70% in Thai steel company S-Con Engineering

Malaysian engineering and construction firm Eversendai Corp Bhd has proposed to acquire 70 per cent stake in Thai company S-Con Engineering Co Ltd for 30 million baht ($840,000).

Eversendai said, the acquisition would open opportunities for it to bid for steel, composite structures, power and petrochemical plant as well as infrastructure projects in Thailand and its surrounding regions.

S-Con has over 20 years of experience in carbon steel and stainless steel fabrication, mechanical construction and installation. It offers full turnkey solutions in design, project management, equipment supply, system installation, commissioning and maintenance.

Executive chairman and group managing director A. K. Nathan said, the proposed acquisition would enable Eversendai to utilise S-Con’s track record to strengthen its relationship with its clients, and is in line with the group’s plans to expand in the Southeast Asian region.

Daya Materials sells 17% in unit to enhance native equity ownership

Daya Materials Bhd is disposing of a 16.9 per cent stake in its subsidiary Daya OCI Sdn Bhd (DOCI) to Rancak Nikmat Sdn Bhd for MYR9.2 million ($2.2 million), for the purpose of increasing bumiputera (native) equity ownership in DOCI.

In a filing with Bursa Malaysia on Tuesday, the integrated oil and gas company said following the disposal, Daya Materials’s shareholdings in DOCI should dwindle to 50.1 per cent, Rancak Nikmat’s stake should strengthen to 41.8 per cent and Wiramas Baiduri’s shareholdings will remain unchanged.

Prior to the disposal, the existing shareholders Daya Materials held 67 per cent stake, Rancak Nikmat 24.9 per cent and Wiramas Baiduri Sdn Bhd 8.1 per cent.

The price was arrived at on a willing buyer-willing seller basis after taking into consideration the net assets of DOCI of MYR28.17 million, based on the audited accounts for the financial period ended December 31, 2014.

“In its ordinary course of business, Daya Materials requires certain licenses and permits to operate its business. The licenses issued enable the group to market our products and services and are subject to bumiputera shareholding requirements and various employment and operating conditions.

“Therefore it is crucial and important for us to ensure that there is sufficient bumiputera equity ownership in DOCI,” it added.

The proceeds raised from the disposal will be utilised for Daya Materials’ working capital, which include operating expenses as well as repayment of trade and other payables, it said.

Also read: Malaysia Dealbook: OSKVI trims stake, Kinsteel disposes RCULS, Takaso off-market trade, Sunsuria rights issue

Cradle Fund, OSKVI invest a combined $550k in Sync Media and MauKerja.my

O&G Dealbook: Daya Materials to buy $120m subsea construction vessel, Uni-Asia buys $18.1m box ship

 

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.

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.