SA Firm Invicta Proposes to Acquire Singaporean Company in Asian Expansion Strategy – Standard Chartered Sole Financial Sponsor
Invicta Holdings Ltd, assisted by the financial expertise and advisory services of Standard Chartered, has announced the proposed acquisition of Kian Ann Engineering Ltd – a large distributor of heavy equipment parts and diesel engine spares listed on the Singapore Stock Exchange. The transaction is valued at ZAR1,361 million and stands to boost Invicta’s revenue by 20%.
A Top 100 company listed on the Johannesburg Stock Exchange and headquartered in South Africa, Invicta Holdings Ltd is one of the leading distributors of capital equipment, spare parts and engineering consumables in Southern Africa. The proposed acquisition is in line with Invicta’s international expansion strategy, which focuses on investing in opportunities in those international markets which demonstrate sound growth opportunities. Kian Ann will provide Invicta with a valuable ‘hub’ for expanding its reach into Asia, leveraging on the operations in Africa to create a more sizeable parts group which, together with Malaysia and Indonesia, boosts diversity and further expansion in the region. Invicta’s current market capitalization is approximately USD654million, with their revenue and profits increasing by 24% and 39% respectively, in the last financial year.
“Kian Ann Engineering has the capacity to distribute more than 1.3 million item lines covering over 270 brands from 220 suppliers, to a global customer base of dealers and end-users. This scale in distribution brings immense benefits to the Invicta Group. Expansion into Asia is a natural progression for our business, and Singapore provides an ideal entry point into several Asian Markets. Given Standard Chartered’s strong footprint in Asia, and their keen understanding of our business needs from an African perspective, the Bank is an ideal partner in facilitating this milestone acquisition for us,” commented Invicta’s Chief Executive Officer, Arnold Goldstone.
Speaking from the Bank’s regional office in Johannesburg, Phillip Reynolds – Standard Chartered’s Regional Head of Strategic Client Coverage for Africa, added, “Standard Chartered has the history, presence and on-the-ground expertise to facilitate trade and investment across the Africa-Asia trade and investment corridor. Singapore is commonly referred to as the gateway into Asia, boasting the world’s busiest port and ranked as one of the easiest places to do business – as such, it is a leading location for investments in the Asia Pacific Region. We are not only inspired by the increasing investor interest in Africa’s growth, but also the ability for African companies to maintain a competitive advantage and expand their reach internationally.”
Standard Chartered continues to play a strategic role in advising and supporting firms in milestone acquisitions between Africa and Asia – some key transactions include the Bank’s appointment as exclusive financial advisor to the China Investment Corporation’s (CIC) first investment into Africa last December, where the sovereign wealth fund bought a 25% stake in South Africa’s Shanduka Group (valued at ZAR2billion / USD250million). Standard Chartered also advised South Africa’s electronic payment solutions provider, Net1, in their acquisition of KSNet in Korea (valued at ZAR1.7billion / approx USD212million).
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