Navis acquires Malaysia's HG Power

The deal marks the private equity firm's fifth investment from its Malaysian Growth Opportunity Fund I and the second this year. The transaction was structured as a direct purchase of a small equity stake in the company plus a subscription to new shares via a substantial capital injection.

The company provides transmission services to utilities providers in Malaysia, designing and installing electrical pylons and energy networks,

"We liked the company's track record," Raj Ayadurai, a partner with Navis, told AVCJ, explaining the deal was a year in the making. "They have been around for quite some time and managed to survive because they are innovative and have developed a reputation for delivering projects on time and on budget."

He added that the company will use the capital to grow its business in neighbouring geographies, particularly in developing economies where the demand electricity transmission services is underserved.

"They were looking for the capital to increase their ability to take on bigger projects and more regional projects," explains Ayadurai. "This additional equity gives them the financial muscle to take on these projects."

The company currently has projects in Indonesa and Bangaldeshj.

Malaysian Growth Opportunity Fund I is now around two thirds deployed. Earlier investments include IT services provider Strateq, cinema operator MCAT Box Office and private education services provider SEG International.

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• Topics
• Southeast Asia
• Infrastructure
• Malaysia
• Infrastructure
• Southeast Asia
• Navis Management