Northstar submits $238m offer for Singapore-listed Innovalues

The PE firm has launched a scheme of arrangement whereby shareholders in Innovalues will receive S$1.01 per share in cash or one share in the Precision Solutions Group - parent of the acquisition vehicle - plus S$0.61 per share in cash, according to a filing. Existing Innovalues shareholders can account for no more than 20% of Precision Solutions Group. The offer represents an 18.1% premium to the Innovalues closing price on September 30.

Goh Leng Tse, the chairman of Innovalues, endorsed the Northstar bid. He currently holds a 20.95% direct interest in the company and has agreed to vote in favor of the private equity firm's offer, alongside three other directors. Between them they own approximately 39%. Should shareholders support the transaction, Innovalues would be de-listed.

The company produces precision machine parts and components for vehicles, printers, mechanical devices, sub-assembly products, and water treatment systems. It has manufacturing facilities in China, Thailand and Malaysia. China is the company's biggest geographical market, accounting for 59% of revenue, ahead of the US at 18%. Four fifths of total sales are to the automotive sector.

Innovalues reported revenue of S$113.7 million in 2015, up from S$108.5 million the previous year. Net profit rose to S$23 million from S$15.8 million over the same period.

Northstar is a Southeast Asia-focused private equity firm that primarily concentrates on investments in Indonesia. Its fourth fund closed in November 2015 at $810 million.

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• Topics
• Southeast Asia
• Industrials
• Buyouts
• Singapore
• manufacturing
• Northstar Group