[18 May 2023] PrimeMovers Equity and Lingotto to Acquire Majority Stake in Malaysia Company EngTek Group
- PrimeMovers Equity
- Jan 22
- 3 min read
Updated: Jan 24
PrimeMovers Equity to help support EngTek’s future expansion with its proprietary Growth and Transformation through Operations (“GTO”) Framework
Lingotto is PrimeMovers Equity’s co-investor in the transaction
Singapore and Malaysia, 18 May 2023 – PrimeMovers Equity ("PME"), a Singapore-based private equity firm, and Lingotto Investment Management ("Lingotto"), a London-based investment management firm, today announced definitive agreements under which they will acquire a majority stake in EngTek Group ("EngTek" or the “Company”) in a transaction valuing EngTek at approximately SGD150 million1.
EngTek is a leading Die Casting and Precision Machining Components Manufacturer based in Penang, Malaysia. Founded by Dato’ Teh Ah Ba in 1974, the Company is a manufacturing stalwart of the local business community and has been servicing global multinational corporations for over 50 years. Its custom precision engineering components cater to a wide range of high-growth industries in the region, including heating, ventilation and air conditioning (“HVAC”), semi-conductor, automotive, and telecom. EngTek boasts capabilities across product design, prototyping, die casting, machining, testing, assembly and supply chain management. Dato’ Teh Yong Khoon is the current CEO and Chairman of the Company, and will continue in his roles post-transaction.
Management Comments
"This investment in EngTek is a prime example of our focus on making proprietary and strategic partnership investments in the industrial manufacturing segment, where we provide capital as well as strategic and operational resources to support growth of the Company," said Mr Soo Jin GOH, Co Founder and CEO of PME. "The acquisition serves as a strong foundation for EngTek’s future expansion, and we are fully committed to help the Company grow both organically and through bolt on acquisitions.”
“We are excited to partner with PME and look forward to a long-term collaboration in the region,” said Ashish KAUSHIK, Partner at Lingotto. “EngTek is well-positioned to capitalise on Southeast Asia’s growing importance in the global supply chain – and we are thrilled about the opportunity to grow alongside PME and EngTek.”
Dato’ TEH Yong Khoon, CEO and Chairman of EngTek, remarked, “The prospect of having PME and Lingotto joining us as strategic partners is immensely exciting. Their participation will enable us to realise our global ambitions and we intend to implement PME’s tried-and-tested GTO framework, which is expected to take EngTek’s operations to the next level.”
Transaction Details
PME, together with Lingotto as co-investor, will purchase a majority stake in EngTek. Enzo II Holdings Pte Ltd, a special purpose vehicle established and managed by PME, will purchase a 27% equity interest in EngTek owned by Positive Carry Sdn Bhd. The sale consideration payable to Positive Carry will be in cash in the amount of RM120 million2, payable in full upon completion. (Related announcements to the Positive Carry Disposal may be found here and here.) The remainder of PME and Lingotto’s majority stake in EngTek will be acquired from Dato’ Teh Yong Khoon for an undisclosed amount. Dato’ Teh and the existing senior management team will retain a meaningful minority stake in the Company post-transaction. Closing of the transaction is expected in the second quarter of 2023, subject to shareholder and regulatory approvals, and customary closing conditions.
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About PrimeMovers Equity
PrimeMovers Equity is a Singapore-based private equity investment management firm that actively works with management teams in the mid-market segment in Southeast Asia by way of its Growth and Transformation through Operations”("GTO") Framework. The firm is led by co-founders, Soo Jin Goh and Randy Teo, who have worked together for over a decade, and each possess more than 20 years of industry and private equity experience. PME is licensed by the Monetary Authority of Singapore (Capital Markets Services Licence No. 101254). For more information, please visit https://www.primemoversequity.com/
About Lingotto
Lingotto Investment Management LLP is an investment management company authorised and regulated by the Financial Conduct Authority and wholly-owned by Exor N.V., one of Europe’s largest diversified holding companies. Its purpose is to deliver attractive long-term returns through a complementary, differentiated, and unique investment approach. The Lingotto name derives from the innovative and historic Fiat Gigafactory in Turin, inaugurated a century ago in 1923. It can also be translated as “ingot”. For more information, please visit https://www.lingotto.com
About EngTek
EngTek is a Malaysia-headquartered Die Casting and Precision Machining Components Manufacturer servicing global multinational corporations. EngTek offers an integrated client service with capabilities across product design, prototyping, die casting, machining, testing, assembly and supply chain management. For more information, please visit https://engtek.com/
Media Contact
Belmont Communications on behalf of PME
Holly Huang
(65) 6832 5070
1 Approximately RM500 million, based on an exchange rate of SGD1.00 : RM3.3488.