If the deal goes through, it will be the largest private equity buyout of an Asian company, surpassing last year’s takeover of China’s Qihoo 360 Technology, according to Bloomberg data.

The investor group comprises Hopu, Hillhouse Capital, Bank of China Group Investment, Vanke and SMG, which is owned by GLP chief executive Ming Mei.

Nesta Investment has proposed acquiring all the issued and paid-up ordinary shares of GLP (excluding treasury shares) by way of a scheme of arrangement at S$3.38 per share, GLP and Nesta Investment said in a joint statement yesterday.

This represents a 67 per cent premium over the one-month volume weighted average price per share up to November 30, 2016, the last trading day before announcement of the strategic review. It is also 25 per cent more than GLP’s last traded price on Wednesday before the shares were suspended.

Subject to shareholders’ approval and the meeting of other scheme conditions, the deal is expected to be completed on or before April 14, 2018. The deal is part of the logistics group’s independent strategic review to look at options available to boost shareholder value.

GLP had embarked on the strategic review last December following a request by its largest shareholder GIC, which owns over a third of the total stake in the company.

Shares of GLP have risen 23 per cent in trading this year, giving the firm a market value of S$12.7 billion. Trading was halted on Thursday, pending the announcement of the deal.

GLP owns and operate a US$41 billion global portfolio of 55 million sq m of warehouses and other logistics facilities in China, Japan, United States and Brazil.

Seek Ngee Huat, GLP chairman, said: “After an extensive evaluation of all final proposals received, the Special Committee decided on the proposed scheme, which we believe is compelling and value-enhancing for all shareholders. We are pleased to announce this scheme for our shareholders’ consideration.”

GIC, which manages Singapore’s foreign reserves, holds a 36.8 per cent stake in GLP, according to Bloomberg data. In a statement yesterday, GIC said it has provided an undertaking to Nesta Investment to “vote in favour of the scheme” in respect to its shareholding interest.

“The GIC undertaking was required by Nesta before it would agree to undertake the acquisition. GIC agreed to give the GIC undertaking after having considered the terms of the acquisition, in particular, both the price and certainty of execution,” it added.

However, despite its undertaking, GIC is free to accept an unsolicited, higher competing bid if one comes in before the scheme meeting is convened and is not matched by Nesta, the terms in the joint agreement noted.

Malaysia’s national carmaker Proton Holdings Sdn Bhd is set to be the principal and pioneer automotive factory in the country to implement the new manufacturing technology under the Fourth Industrial Revolution (Industry 4.0).

Second International Trade and Industry Minister Datuk Seri Ong Ka Chuan said the factory located in Proton City, Tanjung Malim, had been selected as the principal automotive factory to implement Industry 4.0, thus making Perak the pioneer state in the country to implement the concept.

He said this was in line with Proton’s partnership with China’s Geely Holding Group to turn it into a car manufacturing hub using new technology.

“The electronics industry is of paramount importance since 40 per cent of raw materials involved in the country’s manufacturing for exports are electronic-based.

“We need more electronic factories using high technology in every state as this method gives higher returns and provides high-paying jobs to the local community.

“We cannot simply create such factories; we need a pioneer automotive factory to lead the way. For this reason, the Tanjung Malim factory would be the first automotive factory to implement Industry 4.0 method,” he told reporters at an Aidilfitri open house and networking session hosted by the Perak branch of the International Trade and Industry Ministry in Ipoh on Thursday. – The Star

Spirits maker takes over local distribution

Pernod Ricard, the world’s second-largest wines and spirits company, has announced that it will open an office in Cambodia to undertake the exclusive importation and distribution of its products in the Kingdom.

The French spirits maker previously operated a representative office in Cambodia through which it organised product distribution with third-party firms, according to Philippe Guettat, chairman and CEO of Pernod Ricard Asia. With the new office, the company aims to better promote its range of products in the country, including Beefeater gin, Absolut Vodka and Jameson whiskey, and work directly with retailers and wholesalers to gain a greater share of the local high-end alcohol market.

“The DNA of Pernod Ricard has clearly always been we sell our own brands with our own teams and this enables us to activate our brands and to invest longer term,” he said yesterday.

“The idea would be first to capitalise on our brands which already exist in the market and to be able to grow them and develop them.”

The local subsidiary, Pernod Ricard Cambodge, will follow a strategy of promoting its better-known products such as Chivas Regal whiskey or Ballentine’s Scotch whisky, to gain a greater customer base in the country, Guettat explained. He noted that demand has grown in Asia for cognac and whiskey products in particular.

“Cleary today we know that there is an appetite for Scotch whisky in Cambodia and in this regard, Chivas Regal is a very iconic, so we intend to capitalise and cultivate that and grow and develop it,” he said. – Phnom Penh Post

Touch ’n Go to unveil digital platform

Touch ’n Go Sdn Bhd will introduce a new digital platform which will be used in the sales and purchase medium nationwide in the next six months, in line with the move to further enhance cashless transactions at the community level. Chief executive officer Syahrunizam Samsudin said the platform, currently named Touch’n Go e-Wallet, was undergoing several evaluation processes by Bank Negara before it could be introduced to the public.

“Our vision is to introduce this cashless payment system deeper at the community level, not just at the city centre or shopping malls, but also at retail outlets close to the community. In the next six months, we will be launching this platform and we will see the reaction from the users by then,” he told reporters at the Touch ‘n Go Aidilfitri open house here.

The pilot project for the platform was launched in Taman Tun Dr Ismail two months ago in collaboration with the resident association, along with retailers, restaurant operators and market traders. — Bernama

The development confirms an earlier report by StarBiz that KWAP is keen on buying ANZ’s 24 per cent stake in AMMB following its proposed merger with RHB Bank Bhd.

ANZ’s impending exit would mean that the proposed merger between AMMB and RHB would likely go through and mark KWAP’s maiden entry as one of the major shareholders in a financial institution.

In June, both banking groups said they were starting merger talks in Malaysia’s biggest ever banking deal in recent years.

As part of an all-share deal, valued at about US$9 billion, RHB is looking to acquire smaller rival AMMB to create the country’s fourth largest bank by asset size.

The two banks have until the end of next month to exclusively discuss the deal.

ANZ’s stake is expected to be roughly 10 per cent in the enlarged entity.

The Melbourne-based banking group was reportedly trying to sell its AMMB stake since early last year as part of a strategy to divest minority stakes in Asia. Reuters reported quoting sources that ANZ is in talks to sell that stake to KWAP, which already owns small stakes in RHB and AMMB.

Both firms have “agreed in principle” to the deal at a price equivalent to one-time book value of the latter, it added.

In a July 6 StarBiz report, KWAP’s chief executive officer, Datuk Wan Kamaruzaman Wan Ahmad, said that the size of the ANZ stake in the combined RHB-AMMB banking group fits the fund’s investment appetite.

“We are interested, but of course at the right price, and we are going to subscribe up to a 10 per cent stake from ANZ,” he was reported as saying.

Reuters reported that KWAP had considered purchasing part of ANZ’s stake two years ago but was not agreeable to the price.

Quoting sources, the foreign news agency said that ANZ’s stake was also drawing interest from another Malaysian institutional investor.

RHB has indicated to analysts that it would pay AMMB shareholders a one-time multiple of the latter’s book value.

Based on AMMB’s 5.07 ringgit (Bt40) closing price that values it at 0.96 times book value, ANZ block of shares was worth RM3.62bil.

If the RHB-AmBank merger wins the approval of shareholders, the stakes of other key shareholders will also decline in the merged entity.

Shares of RHB, meanwhile, were last traded 5.05 ringgit each.

“The GMS strategy and action plan would pave the way for the subregion to become a global player in safe agri-based food products that are produced through sustainable and climate-resilient means,” Pavit Ramachandran, a ADB senior environment specialist, said in a press release yesterday. “The focus will be on inclusiveness and impacting the small-scale farmers and micro and small agri-enterprises in the subregion.”

The GMS groups Cambodia, Laos, Vietnam, Thailand, Myanmar and the southern Chinese province of Yunnan

ADB brought together key ministers from the countries for a two-day workshop in Siem Reap that began yesterday, with the hope of negotiating the last details of the agreement before meeting again in September.

The officials will discuss promoting a public-private dialogue on mutual recognition of geographic indicator (GI) products within the GMS as well as the possibility of a new regional online portal for sharing agriculture information.

ADB will outline its technical support of the action plan as well as recap the success of the preparatory GMS Core Agriculture Support Program Phase II, which paved the way for a more inclusive strategy.

Edgar Valenzuela, communication and knowledge management specialist for ADB, said this strategy will strengthen the commitment to food security, increase market access for small producers and ensure inclusive food safety for the GMS. “It will focus on expanding markets for safe and environment-friendly agricultural products of small farmers and small and medium agro-enterprises.”

Cambodia could stand to gain the most from agricultural products that have GI status.

“Cambodian exports which are GI, such as Kampot pepper and Kampong Speu sugar, can be easily recognised and can command a higher value or premium price in the market,” he said.

Kampot pepper and Kampong Speu sugar were awarded WTO-backed GI status in 2010.