SG Dealbook: Auric Pacific receives takeover offer; XMH ventures into Myanmar with JV

Singapore skyline at night

Auric Pacific has received a takeover offer that will see it delisted from the SGX, while XMH Holdings is venturing into Myanmar with a JV firm.

Auric Pacific receives takeover offer, to delist

Auric Pacific has received a voluntary conditional cash offer from Silver Creek Capital (offering S$1.65 in cash for each Auric Pacific share not controlled by its largest shareholder Stephen Riady). The offer price represents a premium of 13.4 per cent from Auric Pacific’s closing price of S$1.455 yesterday on 6 February 2017 and is final.

Auric Pacific – operates the Food Junction food courts and manufactures food products such as Sunshine Bread. Silver Creek – is an investment vehicle jointly owned by its largest shareholder Stephen Riady and son-in-law Andy Adhiwana.

Riady, an executive director of Auric Pacific and a member of Indonesian conglomerate Lippo Group, controls 49.28 per cent  Auric Pacifics’ shares while Adhiwana, its chief executive, indirectly owns a 27.44 per cent stake in Auric.

According to Silver Creek, the offer was made to reduce the compliance costs associated with Auric Pacific’s status as a listed company and is also to permit minority shareholders to exit their investments at a premium; the offer price is higher than the trading price of Auric Pacific’s shares since December 1999.

In FY15, Auric Pacific posted a loss of S$40.8 million, compared to a profit of S$231,000 in FY14. This follows the company making an impairment of intangible assets of S$37.2 million from a restructuring of its business. The first nine months of FY16 have seen it post earnings of S$7.5 million.

Shares of Auric Pacific closed 13.4% higher at $1.65 with 13.4 million units traded. The offer has seen shares of Auric Pacific Group rise 13.4 per cent or 19 cents at S$1.65.

XMH ventures into Myanmar with JV

XMH Holdings, the diesel engine, propulsion and power generating solutions provider, is expanding into Myanmar with a joint venture (JV) being established with Myanmar MarcoPolo Co. (MMP). This is through its unit XMH Engineering.

The JV firm will manufacture, assemble and sell generator sets and related power solution products in Myanmar. Additionally, it will provide aftersales and maintenance services.

XMH Engineering and MMP will hold 70 per cent and 30 per cent of the equity interest in the JV respectively. MMP is a newly incorporated private firm in the business of distributing generator sets and related power solution products in Myanmar.

According to XMH, the proposed JV will enable the group to expand its existing core businesses by tapping onto the existing business network of MMP and its proprietor, as well as capitalise on growing business opportunities in Myanmar in relation to the manufacture and sale of marine engines and power solutions locally.

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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.