Actis KS Distribution deal approved

The deal aims to create Asia’s largest oil and gas and marine products distribution business, with more than 60,000 product lines across nine countries. Actis has paid $104 million in cash to take a 44.3% stake, while KS Energy will hold 55%, with the remaining 0.625% held by Koh Soo Keong, CEO of KS Distribution.

Prior to the formation of the JV with Actis, KS Energy’s distribution business was operated by Aqua-Terra Supply Co. Ltd. (ATS) and SSH Corporation Ltd. (SSH) , respectively 54.8% and 28.4% owned by KS Energy. These will be consolidated to the new entity as wholly owned subsidiaries. Four directors will be sent by Actis to the KS Distribution board.

Actis also paid tribute to the contribution of Kris Wiluan, KS Energy CEO and one of Indonesia’s richest men, in supporting the partnership as a realization of his goals for the business.

The formation of the new business has been under way since December last year through the Singapore courts, which had to clear the conditional schemes of arrangement launched for ATS and SSH. These required a relatively complex execution structure for the deals, but have now been officially approved. KS Distribution’s Koh has led various companies at senior level in this sector, including Northern Technology, Ecosave and Toll Asia, with deep knowledge in the logistics sector in particular.

Gary Addison, Partner at Actis in Southeast Asia, told AVCJ, “There are very large significant opportunities for scale-sized oil and gas services companies across Asia because the fundamentals and demand for the oil and gas industry are strong.”

Addison added that Actis’s existing global networks will be highly valuable to help expand KS Distribution’s operations, particularly in emerging markets such as Africa and Brazil, where the energy industry is witnessing strong growth.

“Other interesting markets that we are looking at include China, Indonesia, Australia and Africa,” he said.

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• Topics
• Southeast Asia
• Industrials
• Buyouts
• Actis Capital