KUALA LUMPUR: Private equity firm Dymon Asia Pte Ltd (DAPE), through special purpose vehicle Tasik Puncak Holdings LP (Tasik Puncak LP), is taking a 13.04% stake in mineral water bottler Spritzer Bhd
for RM63.81mil.
In a statement to Bursa Malaysia, Spritzer said it was making a private placement of 27.39 million new shares at an issue price of RM2.33 per share to Tasik Puncak Holdings Ltd, which will hold the shares on behalf of Tasik Puncak LP.
Tasik Puncak LP’s sole limited partner DAPE, which is managed by Singapore-based fund manager Dymon Asia Capital (Singapore) Pte Ltd, invests in companies across South-East Asia and has commitments of about S$300mil.
This will make DAPE the second largest shareholder in Spritzer after cooking oil (Helang, Vesawit, etc) and packaging product maker Yee Lee Corp Bhd, whose direct 32.07% stake will be diluted to 27.89%.
Yee Lee Holdings Sdn Bhd, whose parent company controls Yee Lee Corp, will similarly see its direct stake in Spritzer diluted from 12.49% to 10.86%.
According to Spritzer, DAPE plans to contribute its industry experience as well as its broad networks to support the Spritzer 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 and food and beverage industries in Asia and in particular South-East Asia, especially in Malaysia, Singapore, Thailand and China,” it said.
Spritzer said Tasik Puncak Holdings would appoint a nominee director to the board, and this person was expected to assist the Spritzer board on its future growth plans, which might include product marketing in new markets and potential mergers and acquisitions with suitable companies.
The proposed private placement is expected to be completed by the fourth quarter of this year.
The issue price of RM2.33 per placement share represents a premium of about 8.37% to the 5-day volume weighted average market price of Spritzer shares of RM2.15 each (up to and including Wednesday).
Of the RM63.81mil to be raised, Spritzer plans to spend most of it - RM45mil - to build an automated warehouse next to its current facilities in Taiping, Perak. This will increase its warehouse space by about 105,820 sq ft.
Meanwhile, a sum of RM18.61mil has been earmarked for working capital, including for buying plastic resin and other packaging materials.
Trading in Spritzer shares was suspended from 2:30pm on Thursday pending the announcement of the share subscription. The counter last traded at RM2.33.
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