Actis and KS Energy Announce the Launch of KS Distribution After the Successful Completion of Offers for Aqua-Terra and SSH
SINGAPORE, May 6, 2010 /PRNewswire/ — Actis, a leading emerging markets private equity specialist, is pleased to announce the completion of its investment in KS Distribution Pte Ltd (“KS Distribution”) following the approval by the Singapore Courts of the inter conditional schemes of arrangement in respect of Aqua-Terra Supply Co Ltd (“ATS”) and SSH Corporation Ltd (“SSH”).
The creation of KS Distribution, in an S$320 million deal funded by Actis and KS Energy, aims to create Asia’s largest oil & gas and marine products distribution business with more than 60,000 product lines across nine countries. Actis has invested S$142 million in cash to acquire a 44.375% stake. KS Energy will hold the other 55%, with the remaining 0.625% held by Mr. Koh Soo Keong, CEO of KS Distribution.
The final closing of the deal concludes a four-month approval process that began in December 2009 with the public announcement by Actis and KS Energy of the proposed consolidation. The proposal received strong shareholder support in March 2010 at the shareholder meetings of KS Energy, ATS and SSH. Following the lodgement of court orders approving the inter-conditional schemes of arrangement, ATS and SSH are now wholly-owned subsidiaries of KS Distribution.
Commenting on the announcement, Mr. Paul Fletcher, Senior Partner at Actis, said, “Kris Wiluan is one of Asia’s most talented entrepreneurs; we are inspired by his vision and share his ambition to create a unique pan-Asian oil and gas business. Actis enables businesses to grow and the team will move quickly to consolidate operations across the companies, achieving synergies and increasing profitability.” KS Energy has held stakes in ATS and SSH since 2006, and the success of this transaction completes their integration. Winner of the Ernst & Young Indonesian Entrepreneur of the Year Award in 2009, Mr. Kris Wiluan, Chairman of Singapore’s mainboard-listed KS Energy Services Limited, said, “We are very pleased to bring in Actis, a strong partner whose proven business building skills and in-depth knowledge of emerging markets and the oil & gas industry will contribute significantly to the growth of KS Distribution. Actis’s investment facilitates my long-held vision of building the region’s leading Integrated Energy Supply and Services Hub. With its strong track record and operational expertise, Actis will be an invaluable long-term partner on our journey to increase the scale and reach of KS Distribution, and provide greater value-added services to our customers.”
Mr. Gary Addison, Partner at Actis in Southeast Asia, led the deal team for Actis. He said, “This was an extremely complicated transaction and one of the first deals of its kind in Asia. It is a significant transaction for Actis and strengthens our position as a leading private equity investor in South East Asia. The leadership of Mr. Kris Wiluan, coupled with our operational insight and knowledge of emerging oil and gas markets like Africa and Brazil, will provide the opportunity to create one of the region’s most attractive oil and gas services companies.”
The transaction also builds on Actis’ previous investments in the region, which have included Unza, one of the largest manufacturers of consumer products; APEC, which is involved in oil and gas exploration in Indonesia; and Teknicast, one of the largest high precision die-casting companies in the region.
Actis is a leading private equity investor in emerging markets, with US$4.8billion funds under management and a growing portfolio of investments in Asia, Africa and Latin America. Actis has over 100 investment professionals on the ground in 9 offices worldwide.
In Asia, Actis is a longstanding, experienced private equity investor with a 60-year track record across the region. Actis has over 40 investment professionals in offices in Beijing, Mumbai and Singapore, and manages more than US$2.4 billion in funds across the region.
Actis’s global platform encompasses top teams in some of the world’s key growth markets for oil and gas equipment, including China, Brazil and Nigeria. Actis has been awarded African Private Equity Firm of the Year by Private Equity International magazine, for the last three years. In 2008, Zero 2 IPO named Actis one of the Top-10 private equity firms in China.
Actis announced the closure of its global emerging markets fund, Actis Emerging Markets 3 (AEM3), in December 2008 with commitments totalling US$2.9 billion. The fund received commitments from more than 100 blue-chip investors, including institutions in Singapore and Malaysia, and sovereign wealth funds, public and corporate pension funds, insurance companies, banks, and university endowments from around the world.