Tremendous Asia Partners Group (TAP) has partnered with retirement fund KWAP to acquire a 30% stake in Munchy Food Industries Sdn Bhd. The partners ( TAP and KWAP) have also jointly acquired a 30% stake in the MFI Labuan Ltd.
The deal amounts were not disclosed.
This new development will allow Munchy Group to leverage on TAP’s infrastructure in Southeast Asia together with KWAP’s network in the region to continue its expansion and growth plans to be one of the largest food and confectionery players in the region, TAP and KWAP said in a joint statement.
The partnership (with TAP) is also KWAP’s private equity arm’s first direct investment.
KWAP chief executive officer Wan Kamaruzaman Wan Ahmad said the collaboration with TAP is part of the fund’s strategy to co-invest with general partners.
TAP joint managing partner Ng Teck Wah said that there was an opportunity in the consumer sector particularly in the FMCG space, which has shown sustainable growth in South East Asia due to the rise of the middle class, increasing disposable incomes and changing lifestyles.
“We believe Munchy Group represents a tremendous opportunity for TAP and KWAP to participate in the growth of this segment,” he said.
TAP joint managing partner Jared Lim added : “We have a hands on value accretive investment strategy and our consumer portfolios have seen growth since our involvement.”
Munchy Group, leading food and confectionery manufacturer in Malaysia with a distribution reach of over 45 countries, will continue to be headed by the its founders – theTan brothers. They will be backed by a team of experienced senior management.
The group has several popular brands like Oat Krunch, Lexus, Muzic and Captain Munch under its mother brand “Munchy’s”.
TAP is an emerging Asia private equity fund focused in Malaysia, Thailand, Singapore and Indonesia.
It invests in the consumer space encompassing food and beverage, education, healthcare, lifestyle, media and entertainment.
Last year, KWAP, also known as Retirement Fund Incorporated, won approval from the government to increase its global investment from 10% to 19%. Of that, 2% was allocated for PE, 1% for infrastructure. KWAP will also invest 6% of its portfolio in foreign equities, 5% in fixed income securities, 6% in real estate.
( edited by Yamini Dhall)