Category: Enterprise

Indonesian Indo Komoditi to acquire Sinar Cahaya Cemerlang, Zonergy’s local unit for US$33 million

Indonesia’s rubber producer Indo Komoditi Korpora has made an announcement today about its plans to acquire Chinese firm Zonergy’s local CPO unit, Sinar Cahaya Cemerlang (SCC), for a maximum price of US$33 million.

According to Indo Komoditi Management, it intends to purchase between 60 to 100 percent of SCC’s paid up capital using a total of US$15 million received in loans from major shareholders Alam Tulus Abadi (ATA) and Sinoasia to fund the acquisition.

“Sinosia will give out a maximum amount of US$10 million, while ATA will provide US$5 million,” said the company officials in a statement. The acquisition will be completed after a due diligence has been conducted.

Based in Beijing, Zonergy is involved in the development of solar and biomass energy as well as the cultivation of oil palm, owning more than 30,000 hectares of oil palm. The company is also an affiliate of ZTE Group, one of the largest Chinese telecommunications firms.

Established in 1982 under the name of Indo Aya Leasing, Indo Komoditi is a company that is involved in a wide range of activities from leasing, trading, agency, representatives, contractor, services, transportation, printing, agriculture, and real estate to industry.

The company went public in 1989 but was delisted by the authorities in 2013. It was then re-listed on the Indonesian Stock Exchange (IDX) in September 2016,

The Indonesian firm also said that it believes a stable prospect for the future of the palm oil industry, as Crude Palm Oil (CPO), is currently the most used oil in the world, being one of Indonesia’s main drivers in exports. Hence, with the acquisition of SCC, this will become Indo Komoditi’s first venture into the CPO business.

In the first nine months last year, Indo Komoditi reported a total sale of Rp 291.3 billion, a slight drop from the same period the year before which was Rp 294 billion. However, profits jumped to Rp 3 billion from Rp 1.3 billion in the third quarter of 2015.

Indo Komoditi will obtain its shareholders’ approval for the transaction on March 2, 2017.

By Vivian Foo, Unicorn Media

Thai consumer products firm Neo Corp secures US$6.73 million investment from Finansa Fund

Neo Corporate, a Thai manufacturer and distributor of house brand consumer and cosmetic products has raised an investment from Finansa Fund Management, a wholly-owned subsidiary of Finansa Pcl which is worth 237 million baht (about US$6.73 million).

As per details of the agreement, the investment is conducted in the form of an exchangeable five-year loan, which will be later converted into of Neo Corporate’s common shares.

Formerly known as BIO Consumer, Neo Corporate is a private company that was established back in 1989 by the Thakolsri family. The enterprise is one of the global suppliers and market leader in household and consumer products.

Its portfolio of products includes the popular Fineline, BeNice, Eversense, Genie, Tros, D-Nee, and Vivite among some.

With the capital, the company will construct a new manufacturing facility in the province of Pathum Thani in order to increase its production capacity and meet the rising demand in the domestic market as well as neighboring countries.

According to Suttidej Thakolsri, the CEO of Neo Corporate, the company would invest around 2.5 billion baht (about US$71 million) to realise its facilities in Pathum Thani, marking the company’s highest investment over the past 27 years.

With this investment, the company expects to increase its annual sales revenue from 6 billion baht (about US$170 million) at present to 10 billion baht (about US$285 million) in the next five years.

Targeting companies from the consumer, logistics, technology, food production and distribution sector, Finansa also said that it anticipates further private equity investments in the future, aiming to complete one transaction per year.

At the same time, Finansa Fund Management plans to get Neo Corporate to be listed on the Stock Exchange of Thailand within the next three years.

By Vivian Foo, Unicorn Media

Chinese antibody drug developer Mabworks raises US$39 million Series B led by GTJA Group

Mabworks Biotech Co. Ltd., a gene-engineering antibody drug developer has on Tuesday raised a RMB270 million (about US$39 million) Series B financing round led by Shenzhen GTJA Investment Group, a Chinese private equity firm focusing on the healthcare industry.

Other investors include Harvest Capital Management Co., Ltd., as well as existing investors Mefund Capital and Beijing E-Town Biomedical Park which also participated in the round

Commenting on the funding, GTJA Investment said, “Antibody drugs have high entry barriers, it demands large-scale production and massive capital investment. Mabworks has almost completed its drug development platform and is ready to manufacture drugs on an industrial scale.”

Founded in 2003, Beijing-based Mabworks is currently developing antibody drugs such as an Ebola cure MIL77. At present, the company has two drugs which have reached the clinical trial process, including MIL60, a substitute of cancer and a specific eye disease drug Bevacizumab, and MIL62, a chronic lymphocytic leukemia drug.

“Mabworks’ valuation has significantly increased because of the great progress it has made in its drug development process,” said Liang Zhanchao, founder of Mefund Capital. “We are making a follow-on investment because we believe in Mabworks’ core founding team, consisting of four overseas educated executives and their ability to support the company’s future growth.”

Prior to this, Mefund Capital has also invested and led Mabworks’ Series A in May 2016 which has raised over RMB100 million (about US$14 million).

Established in 2001, Shenzhen GTJA Investment Group has made various growth stage investment and buyout deals in the healthcare industry in China. It previously invested in Jiangxi Boya Biopharmaceutical Corporation, a biopharmaceutical company in China that achieved its stock market listing in 2013.

By Vivian Foo, Unicorn Media

Singapore-based CoAssets invests US$145K in Chinese product crowdfunding platform Da Xian Bing

Listed on the mainboard of the Australian Stock Exchange (ASX), Singapore-based CoAssets has today announced that it has made a RMB1 million (about US$146k) investment in Fujian’s crowdfunding startup Da Xian Bing for a 10 percent equity interest.

Key terms of the investment include the cash consideration for 10 percent equity with 60 percent to be recouped from CoAssets’ joint venture partner Fujian Yaosheng. Besides, CoAssets will also appoint one of their four directors to the board of Da Xian Bing.

Additionally, there is also a performance-based consideration of up to RMB4 million (about US$582k), linked to the company’s revenue and user-based hurdles.

Pro-acquisition, the stake in Da Xian Bing will grant CoAssets the access to a rapidly growing user base of more than 300,000 users as well as to expand its business footprint in China, where it already maintains operations through a 40 percent joint venture with Fujian Yaosheng.

“With a growing middle class that has increasing disposable income to spend and invests, China has always been one of the key markets for us,” said the CEO and co-founder of CoAssets, Getty Goh.

“Having secured this deal, I am pleased to note that CoAssets is one of the very few homegrown crowdfunding platforms that has managed to break into a market as competitive as China,” he further adds.

In spite of the competitive nature and maturity of China’s crowdfunding and P2P market, Goh also highlighted that CoAsset’s role as an oversea-listed company coupled with the brand strength it possessed as a Singapore enterprise lies in a whole different category.

Moreover, the collaboration with Da Xian Bing will provide a much greater market reach and penetration, given that it operates in the product crowdfunding space rather than investment crowdfunding like CoAssets.

Commenting on the investment prospects, CoAssets conservatively expects to increase its user base in China by 300,000 within 6 months of the investment in Da Xian Bing.

“We will be rolling out a series of marketing initiatives to engage Da Xian Bing users and we hope to convert most, if not all, of them to become registered investors of our CoAssets China platform,” said CTO and Co-Founder of CoAssets, Dr. Seh Huan Kiat.

CoAssets currently has 70,000 registered investors and expects to see more than 370,000 registered investors by mid-2017 and potentially exceed the 400,000 registered investors market by the end of 2017.

“If we are able to maintain our investor conversion rate and investment amount at the average of about 2% and S$10,000 respectively, the number of crowdfunding projects we can undertake will significantly increase,” Dr. Seh adds.

Unlike CoAssets which acts as an investment crowdfunding platform, Da Xian Bing itself operates in the space of product crowdfunding. Both companies believe that this deal demonstrates a good potential for synergy between both firms and users.

By Vivian Foo, Unicorn Media

CDH-backed New Century Healthcare completes US$102 million Hong Kong IPO

New Century Healthcare, a Beijing-based pediatric, obstetric and gynecological healthcare provider backed by Chinese alternative investment firm CDH Investments, has on Wednesday completed a listing on the Hong Kong Stock Exchange.

The company shares were priced at HK$7.36 (US$0.94), that is at the midpoint of the share price guidance it issued for the 120 million shares which were within the range of HK$6.36 to HK$8.36

The hospital group has raised around HK$789 million (US$102 million) via the initial public offering in which it plans to use to open more hospitals and clinics in China’s major cities.

Specifically, the healthcare firm will further expand its coverage in Beijing and other first-tier cities and enhance its ability to provide high-quality medical services, to build up a world-class medical service institution.

“New Century Healthcare is one of the biggest children’s hospital operator in China,” said Huang Jingjing, a managing director at CDH’s innovation and growth fund. “It is a great addition to China’s public hospitals and fills a market void meeting demand from high-end clients.”

Founded in 2002, New Century Healthcare currently owns and operates three leading pediatric clinics in Beijing, including Beijing New Century (BNC) Children’s Hospital, BNC Womesn’s and Children’s Hospital and BNC Harmony Clinic.

The company said in its prospectus it focuses on the provision of mid to high-end women and children’s medical services and said it has accumulated in-depth expertise and experience in the public-private partnership arrangement with public hospitals.

Currently, there are 441 doctors in the group, among which more than 90 percent have obtained the attending physician title and above, possessing at least five years of pediatric outpatient service.

CDH Investments, which previously invested in Ciming Health Checkup Group, Luye Pharma Group Ltd. and a number of healthcare firms in China, held a 16.6% stake in New Century Healthcare before the IPO.

New Century Healthcare recorded earnings of RMB238 million, RMB249 million and RMB258 million from 2013 to 2015, respectively.

By Vivian Foo, Unicorn Media

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