KUALA LUMPUR: Ekuiti Nasional Bhd (Ekuinas) has identified and ready to acquire subsidiaries of government-linked companies (GLCs) that will embark on privatisation activity.
Bernama, in report today, said high-level talks have taken place with the identified companies. The fund, earlier this year has launched a RM1bil Ekuinas Direct (Tranche IV) Fund with an option to increase to RM1.5bil.
“We are ready but it is also up to the companies, what they see going forward. As for Ekuinas, we still haven't deployed Ekuinas' tranche IV fund and we are willing to spend between RM30mil and RM300mil per company,” chief executive officer Syed Yasir Arafat Syed Abd Kadir said after a media briefing on its 2018 financial results.
In a statement today, Ekuinas said the Ekuinas Direct (Tranche II) Fund posted a Portfolio Return of RM490.1mil in 2018.
The fund generated an annualised gross internal rate of return (IRR) of 14% and net IRR of 9.8%.
The third fund, Ekuinas Direct (Tranche III) Fund posted a gross portfolio return of RM53.5mil, translating to an annualised gross IRR of 4.5%.
Since inception, Ekuinas had undertaken investments in 41 companies through direct investments and outsourced programme, amounting to RM3.9bil, which together with private capital, facilitated a total capital deployment of RM4.6bil that positively impacted the Malaysian economy.
In 2018, Ekuinas committed a total of RM331.5mil to acquire two new companies and three follow-on investments.
2018 also saw an active year for Ekuinas with three exits.
Tranglo Sdn Bhd generated gross proceeds of RM114.9mil, achieving an IRR of 26.9% and a money multiple of 2 times the capital invested.
The fund also sold its stakes in third party claims administrator service providers, MediExpress Group and PMCare Sdn Bhd, which generated a minimum IRR of 38.8% and a money multiple of 2.6 times the capital invested.