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.