Advisor to Pan-Asian Semiconductor Component Manufacturer

Our team advised the shareholders of pan-Asian semiconductor component manufacturing group (“Company”), on its acquisition by a Hong Kong based private equity whose founders have deployed over US$6.6bn in equity and debt investments across Australasia and Europe.

The Company is a reputable precision engineering group serving the top global chipmakers to produce IC chips used in  automotive, info-communication, industrial and consumer products. It has a 30 year track record and has enjoyed a solid reputation amongst in the semiconductor and precision machining industries. The company is headquartered in Singapore and employs more than 500 staff across Singapore, Malaysia, Philippines and China.

The buyer is a Hong Kong based alternative investment firm whose founders have extensive experience in making direct private investments across Australasia and Europe, having deployed over US$6.6bn in equity and debt investments combined. It has offices in Hong Kong, Shanghai and London and currently manages 3 funds: a private equity fund, an Australian property fund and a decarbonization fund.

Our team served as the exclusive advisor to the seller. Due to Covid-19, there were numerous challenges that arose in the deal process. Our team was patient and guided the seller through a carefully planned confidential auction process, which resulted in a 100% divestment for the seller with no earn-outs, no reinvestment  and no claw backs. We also worked with an insurance company to insure the seller against possible warranty and indemnity claims. We achieved a valuation and deal outcome over and above the seller’s expectation. 

Note: This transaction was executed by the Mergerstone leadership team before the incorporation of the company.