Novo Tellus unit makes partial offer to buy additional 28% in Singapore IT firm Procurri

Photo by Andrea Natali on Unsplash

Novo Tellus PE Fund 2, the largest shareholder in the Singapore-based IT company Procurri Corporation Ltd, has launched a partial offer to acquire an additional 27.91% of Procurri’s ordinary shares. The proposed purchase will be made through the PE fund’s investment vehicle NTCP SPV VIII.

At S$0.365 per share, the offer price is at a premium to historical trading prices and will be made in cash, according to a statement on Monday. Shareholders have the option to tender up to 100% of their shares for a 32.7% premium over the last traded price.

If the offer is successful, the offeror (NTCP SPV VIII) will hold an aggregate 51% of Procurri.

Senior executives of Procurri, a global provider of IT lifecycle services and data centre equipment, have agreed to approve the partial offer and tender 50% of their shares which amount to 17.35 million shares or 5.9% of all shares.

“My fellow senior managers and I are tendering 50% of the shares we hold because we believe the partial offer gives shareholders an attractive cash premium today, while keeping Procurri listed to allow shareholders to continue taking part in its long-term equity growth,” said Procurri chairman and global CEO Sean Murphy.

“The partial offer will allow the offeror and Novo Tellus to take a more active role in working with Procurri management to build long-term value in the coming years,” Novo Tellus and the director of the offeror Keith Toh said.

The offeror said it believes Procurri faces a very challenging transition, with limited revenue visibility and large investments needed to generate growth. As a result, the offeror believes that earnings prospects may be depressed and the company may not be in a position to pay dividends in the next few years.

Oversea-Chinese Banking Corporation Ltd (OCBC) is the sole financial advisor to the offeror in connection with the partial offer.

Novo Tellus is a private equity firm focused on investments in Southeast Asia’s technology and industrials market. Headquartered in Singapore, Novo Tellus seeks to work closely with companies to create long-term equity value by applying its specialised investing, operating, and engineering experience to help grow customers, products, and equity value with a patient, long-term approach.

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.