Private equity firm Novo Tellus has signed a conditional placement agreement to invest S$23.6 million ($17.7 million) in Singapore’s Catalist-listed semiconductor supplier Grand Venture Technology (GVT), according to the stock exchange announcement.
The investment will be made through NT SPV 12, the Cayman Islands-based, a wholly-owned subsidiary of Novo Tellus PE Fund 2 L.P. The fund invests in mid-market technology and industrials sector firms in Southeast Asia.
NT SPV 12 will acquire 71.5 million new ordinary shares of GVT or 23.4% of the company’s enlarged share capital. The issuing price of S$0.33 per share represents an 18% discount over the volume-weighted average price (VWAP) of $0.40 per share based on the trades done on the SGX-ST on 11 January 2021.
GVT plans to use a majority of the proceeds to expand its business through mergers and acquisitions, joint ventures and partnerships. It will also deploy a part of the capital towards enhancing operational and engineering capabilities and for working capital, according to the announcement.
Following this investment, NT SPV 12 will nominate one director for appointment to the board.
Along with this transaction, existing controlling shareholders, Metalbank Singapore, have sold 19 million shares or 8.1% of GVT’s stake for S$6.27 million. When the transaction was announced, Metalbank held 133.47 million shares or 57% of GVT.
Novo Tellus’s earlier investments include Singapore-based data centre solutions provider Procurri Corporation; industrial automation firm ISDN Holdings and smart card IC module and test services player NovoFlex.