Singapore-based private equity firm Dymon Asia, through its special purpose vehicle Tasik Puncak Holdings LP, has purchased a 13.04% percent stake in Malaysia-listed mineral bottled water producer Spritzer for RM63.81 million (about US$15.08 million).
Through a private placement, Spritzer has issued a total of 27.39 million new shares priced at RM2.33 (about US$0.55) apiece to Tasik Puncak Holdings Ltd, which will hold the shares on behalf of Tasik Puncak LP.
This deal will therefore see Tasik Puncak LP’s sole limited Partner DAPE, which is managed by Dymon Asia Capital (Singapore) Pte Ltd become the second largest shareholder in Spritzer with 209.969 million shares.
The largest shareholder will remain to be cooking oil and packaging product maker Yee Lee Corp Bhd, whose direct stake will be diluted from 32.07 percent to 27.89 percent.
According to Spritzer, DAPE will also contribute its industry experience and its broad networks to support the group in its future growth plans.
“The DAPE investment team has an established track record in investments, and also operational and strategic value add with companies in the consumer, food and beverage industries in Asia and in particular in Southeast Asia, especially in Malaysia, Singapore, Thailand, and China,” said Spritzer.
Following the proposed placement, Tasik Puncak Holdings would appoint a nominee director to the board who will assist the Spritzer board on its future growth plans, which might include product marketing and planning potential mergers and acquisition.
With the proceeds from its sale, Spritzer plans to use RM 45 million for the expansion of the water house facility of the Spritzer Group at Taiping, in an effort to increase its warehouse space by about 105,820 square feet.
On the other hand, the remaining RM 18.61 million will be used as working capital to buy plastic resin and other estimated expenses related to the exercise.
UOB Kay Hian Securities (M) Sdn Bhd has been appointed as the adviser and placement agent for the deal which is expected to be completed by the fourth quarter of the year.