Singapore’s Challenger Tech gets take-private offer from Dymon Asia

A logo of the Singapore Stock Exchange (SGX) is pictured outside its premises in the financial district of Singapore April 23, 2014. REUTERS/Edgar Su/Files

Singaporean electronic retailer Challenger Technologies has received a take-private offer from Digileap Capital, a partnership between the founding Loo family and Dymon Asia Private Equity.

The private equity firm-backed group has made a cash exit offer for all of its shares at S$0.56 per share ($0.42 per share).  Based on the total shares outstanding as of December 31, 2018 at 345,207,961, the S$0.56 offer values the firm at around S$193.32 million ($143 million).

According to a statement, Dymon Asia Private Equity has made the offer via its second Southeast Asian fund. Dymon Asia PE Fund II has commitments of $450 million and invests in small and medium-sized companies across Southeast Asia.

The delisting process is conditional on SGX’s approval and a delisting resolution to be passed at an extraordinary general meeting of Challenger.

The undertaking shareholders, which includes Ng Leong Hai and four members of the Loo family(Loo Leong Thye, Ong Sock Hwee, Loo Pei Fen and Loo Wei Kiat) have provided undertakings to vote in favour of the delisting resolution. They currently hold approximately 78.64 per cent of the total number of issued shares.

The statement states that the exit offer price is a 15.1 per cent premium over the volume-weighted average price of 48.7 Singapore cents for the 12 months up to and including the last full market day. It also represents a 110.1 per cent premium to the net tangible asset value of Challenger as of 31 December 2018.

Challenger added the delisting will eliminate costs of compliance with the listing rules and regulations, allowing it to focus its resources on business operations. Challenger has also been facing weak retail sentiment and industry disruption requiring it implement changes to its business.

DBS Bank is the financial adviser to the offeror for the delisting and the exit offer.

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.