Dymon backs take-private of Singapore’s Penguin International

The consortium is offering to acquire all outstanding shares for SGD 0.82 apiece, which represents a 15.5% premium to the May 4 closing price. Penguin International’s stock jumped by about the same amount on May 5 to close at SGD 0.825, and it remained at that level as of early trading on May 7.

Jeffrey Hing, the company’s executive chairman, owns 55% of the acquisition vehicle. Dymon has 40% and James Tham, a managing director at Penguin International, has 5%. Together, the consortium members hold an 80.05% interest in Penguin International, which means the offer doesn’t come with a minimum acceptance requirement, according to a regulatory filing.

Three primary reasons were given for the take-private: it gives liquidity to shareholders of a relatively illiquid stock; it will allow the company greater operational flexibility and result in optimal use of management and capital resources; and it removes the compliance and associated costs of maintaining a listing in Singapore.

Working out of shipyards in Singapore and Indonesia, Penguin International designs and builds high-speed aluminium craft typically used as workboats, patrol boats, and passenger ferries. It has delivered more than 150 vessels since 1995. The company also offers crew boat charters and runs ferry services.

Revenue came to SGD 135.2m for the 12 months ended December 2022, up from SGD 132.6m a year earlier. Over the same period, net profit dropped to SGD 10.2m from SGD 12.7m.

Dymon Asia closed its third Southeast Asia-focused fund last October on USD 650m. It typically pursues carve-outs and management buyouts, pre-IPO growth investments, and privatisations. Singapore de-listings are a favoured move, with healthcare specialist Singapore O&G and property developer Hwa Hong Corporation added to the portfolio in the past year.

The private equity firm also has recent experience in the shipping and marine services space. It acquired RAM Spreaders, a leading manufacturer of ship container handling equipment, through a carve-out from Germany-based Salzgitter Maschinenbau.

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• Topics
• Southeast Asia
• Industrials
• Buyouts
• Singapore
• Logistics
• manufacturing
• Dymon Asia