Northstar withdraws interest in Singapore-listed Spindex

A Northstar-owned entity said in a filing that it would cease exploring its options with regard to Spindex. Choo Pie Tan, the chairman, earlier completed and settled transactions for a 14.69% holding in the company, taking his personal ownership to 43.62% and that of the consortium to 50.51%.

The Tan-led consortium offered to buy Spindex on February 9 through a scheme of arrangement. It bid S$0.85 per share, valuing the business at S$98 million ($69.4 million). An unnamed third party requested to conduct due diligence on Spindex, and the Tan consortium responded by switching its bid to a mandatory conditional cash offer. Then Northstar said it might submit a more attractive buyout offer.

Founded in 1981, Spindex supplies the imaging and printing industry (in printers, copiers and scanners), automotive and machinery customers (in brakes, drive systems and industrial tools), and consumer and lifestyle products (ranging from bicycles and fishing rods to washers and irons). It generated S$124.2 million in revenue in 2016, up from S$114.2 million the previous year, while net profit slipped to S$10.1 million from S$12.2 million over the same period.

Northstar is currently investing its fourth fund, which closed in November 2015 at $810 million. Last year, the private equity firm offered to buy Innovalues, another Singapore-listed components manufacturer, in a deal worth approximately S$331.4 million. The Innovalues chairman supported the bid, which was structured as a scheme of arrangement. The company is expected to delist this month.

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