Kohlberg Kravis Roberts & Co.
), deliberating over the acquisition of Singapore-based Goodpack
Ltd for the last one year, has finally confirmed the deal. IBC
Capital Limited, an affiliate of Kohlberg Kravis, will take over
Goodpack, the world's largest maker of intermediate bulk
containers, at a price of S$1,399 million ($1.11 billion). The
deal, however, is subject to Goodpack shareholders' approval and
the sanction of the High Court of Singapore.
The transaction will be carried out through the share scheme, in
accordance with the Singapore Code on Take-overs and Mergers and
the Companies Act of Singapore. Under the share scheme, all issued
ordinary shares of Goodpack will be transferred to IBC Capital.
Goodpack shareholders will be entitled to S$2.50 per share in
cash, a premium of 23.2% to Goodpack's closing price on Mar 18,
2014. However, once the deal is completed, Goodpack will turn into
a wholly owned subsidiary of IBC Capital and will be de-listed from
the Singapore Exchange Securities Trading Limited.
Kohlberg Kravis, the New York-based global private equity fund, is
always on the lookout for lucrative properties with growth
potential. Some of the company's recent acquisitions define not
only its expansion strategy but also its portfolio diversification
plans. The takeover of Goodpack is the first takeover of a listed
company from Kohlberg Kravis' $6 billion Asia fund. Notably, this
is the largest private equity fund ever raised for Asia.
In recent times, private equity firms have been showing increased
interest in Asian properties. According to Thomson Reuters, private
equity investment in Asia has nearly tripled year to date compared
to the prior-year period. Kohlberg Kravis' Asian exploration also
indicates the opportunities in that continent.
Kohlberg Kravis currently carries a Zacks Rank #3 (Hold).
Better-ranked investment managers include
Affiliated Managers Group Inc.
Cohen & Steers Inc.
Woori Finance Holdings Co., Ltd.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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