Lombard exits stake in Thai auto parts manufacturer

In 2004, Lombard became the first institutional investor to back SAT, which was then a family-held company. SAT went public in early 2005, raising THB954.6 million ($32 million) through the sale of 74 million shares, a third of which went to institutional investors.

The Thailand Equity Fund bought a 13.3% stake in SAT, also in 2004.

The company used the funds to build up its car and light trucks parts business, successfully diversifying into agricultural equipment parts. Sales reached a record $59 million in the first quarter of 2011. By comparison, the company posted sales of $26.4 million for the first three quarters of 2004.

SAT claims to have pioneered the manufacture of automotive spring products in Thailand in 1962, before moving into drive shafts, brake, engine and suspension parts, with an emphasis on the one-ton pick-up truck segment.

This is Lombard's third exit in Thailand in the last two years. In March it sold its 23% stake in paper manufacturer S. Pack & Print to Japan's Oji Paper, for a 3.5x return, having previously restructured the company and taken it public. In June 2010, Lombard realized a 2.5x return as it exited S&P Syndicate, a restaurant and bakery chain.

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• Topics
• Southeast Asia
• Industrials
• Exits
• Lombard Investments