Dymon makes $145m take-private offer for Singapore's Challenger

DAPE has agreed to buy all of Challenger's shares at S$0.56 apiece via its second fund, which closed last year at $450 million. The stock went into a trading halt at S$0.53 on March 18 and has held steady at about $0.56 since the announcement of the offer. It has traded in a range of S$0.40 to S$0.50 for the past four years.

Challenger said it was seeking to increase operational flexibility and eliminate capital markets compliance burdens. The company has not sought to raise funding from the Singapore Exchange since 2007. According to a filing, a group of shareholders representing 79% of Challenger, including CEO Loo Leong Thye, has agreed to vote in favor of the delisting.

Improved operational flexibility is hoped to offset pressures related to weak retail sentiment and industry disruption. Challenger saw revenue fall 17% during 2017 to S$322 million due to poor performance in its retail and tradeshow divisions. Profit improved 4% during the same period to S$16.4 million, with the company citing cost-cutting measures and more efficient allocation of manpower.

DAPE targets opportunities across retail, fast-moving consumer goods, food and beverage, healthcare, manufacturing, education, and B2B business models via offices in Singapore, Malaysia and Thailand. Its latest fund makes growth and control investments in companies that have annual profits of $5-30 million.

Recent activity includes investments in Malaysia’s Holstein Milk Company and a medical division of Singapore-based Sembcorp Environment that focuses on biohazardous waste disposal. Last year DAPE exited Wah Loon Engineering, a regional mechanical and electrical services provider, to France-based Vinci Energies in a deal estimated to be worth S$250 million.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Southeast Asia
• Technology
• Support services
• Buyouts
• Consumer
• Singapore
• Dymon Asia
• Media