PrimeMovers Equity (PME), a Singapore-based private equity firm, and Lingotto Investment Management, a London-based investment management firm, have announced their plans to acquire a majority stake in EngTek Group, a leading Die Casting and Precision Machining Components Manufacturer based in Penang, Malaysia.
The transaction values EngTek at approximately SGD 150 million.
EngTek, founded in 1974 by Dato’ Teh Ah Ba, has been serving global multinational corporations for over 50 years and is a prominent player in the local business community.
The company specializes in manufacturing custom precision engineering components for industries such as HVAC, semiconductors, automotive, and telecom. EngTek offers a comprehensive range of services, including product design, prototyping, die casting, machining, testing, assembly, and supply chain management.
Dato’ Teh Yong Khoon, the current CEO and Chairman, will continue in his roles following the acquisition.
Both PME and Lingotto expressed their enthusiasm for the partnership and their commitment to supporting EngTek’s growth.
PME’s CEO, Mr. Soo Jin Goh, highlighted the strategic investment in the industrial manufacturing sector, aiming to provide capital and resources for the company’s expansion.
Lingotto’s Partner, Ashish Kaushik, recognized the potential for EngTek to capitalize on Southeast Asia’s growing importance in the global supply chain.
Dato’ Teh Yong Khoon, CEO and Chairman of EngTek, expressed excitement about the participation of PME and Lingotto as strategic partners, emphasizing their ability to help EngTek realize its global ambitions.
He mentioned the implementation of PME’s GTO (Growth and Transformation through Operations) framework as a means to elevate EngTek’s operations to the next level.
The transaction details include PME and Lingotto acquiring a majority stake in EngTek, with PME’s special purpose vehicle purchasing a 27% equity interest from Positive Carry Sdn Bhd for RM 120 million.
The remaining majority stake will be acquired from Dato’ Teh Yong Khoon for an undisclosed amount. The transaction is expected to close in the second quarter of 2023, pending shareholder and regulatory approvals.
PrimeMovers Equity is a Singapore-based private equity investment management firm that focuses on the mid-market segment in Southeast Asia, employing its GTO Framework.
Lingotto Investment Management is a London-based company owned by Exor N.V., aiming to deliver attractive long-term returns through a differentiated investment approach. EngTek is a Malaysia-headquartered manufacturer offering a wide range of services in the die casting and precision machining components sector.