[Updated] MY-based creamer business accepts takeover offer from Southern Capital

Bursa-listed Can-One Bhd has accepted the offer to sell its creamer business to Singapore-based private equity firm Southern Capital Group, it said in a stock filing on Tuesday afternoon.

To recap, Can-One on Monday evening said it has received a letter of offer from Southern Capital to acquire its wholly-owned dairy product manufacturing arm F&B Nutrition Sdn Bhd for up to 1 billion ringgit ($240 million).

The conditional offer was made via a Southern Capital special purpose vehicle, Asia Dairy Creations Sdn Bhd (ADSCB), at an indicative price of between 800 million ringgit ($191.5 million) and 1 billion ringgit ($240 million).

Local metal can manufacturer Can-One had less than 48 hours to deliberate on the offer until 5 pm today, after which it would automatically lapse.

According to the latest stock filing, Can-One said its board has deliberated on the offer and has decided to accept it on the terms, and subject to conditions set out in the term sheet, which is appended to the offer letter.

The offer will be subject to a definitive agreement and other ancillary agreements being entered into between Can-One and ADCSB within 30 days from the date of acceptance of the offer, with an automatic extension for a further period of 30 days, or such further extension of time as the parties may mutually agree.

F&B Nutrition is an original equipment manufacturer of sweetened creamer and evaporated creamer. It said that over 70 per cent of its products are exported across the Middle East, Africa, ASEAN and South Asia. The unit is 20 per cent owned by Can-One, and the remaining stake is held by Amber Alliance Sdn Bhd, a wholly-owned subsidiary of Can-One.

Southern Capital held the final close of its fourth fund at $500 million early this year, after securing commitments from several US and Europe-based family offices, endowments and pension funds. Focusing on buyouts, Fund IV will continue to invest in Southeast Asia’s mid-market businesses with enterprise value between $20 million and $200 million.

Besides Southern Capital, several regional PE firms are also on the road to fundraise, including Malaysia-headquartered Navis Capital, who is seeking to raise $1.75 billion for its eighth fund, also the largest in the region. The vehicle reached the first close in April and is expected to hold a final close by year-end.

We had also reported that Singapore-based KV Asia Capital is looking to offload its Malaysian portfolio companies DXN Holdings and TF Value Mart to help with the fundraising activities of its second fund. The firm is looking to raise about $300 million for its second fund.

Another Malaysia-based private equity firm, Creador, aims to hit the $550-million hard cap for its fourth fund in the coming months. One of the firm’s portfolio companies – Malaysian home improvement retailer Mr. D.I.Y. is looking to debut on Bursa Malaysia with a 1.5 billion ringgit ($360 million) IPO this November.