TAIPEI, Sept. 17 /Xinhua-PRNewswire/ -- FAT Capital announced today that Hong Chuan Investment Co., Ltd., a company wholly owned by a private equity consortium led by FAT Capital, has successfully completed its tender offer to acquire computer peripherals maker Primax Electronics Ltd. (TWN Ticker: 2336). Primax is one of the top two contract manufacturers of PC mice.
At closing on September 7, the consortium led by FAT Capital acquired approximately 70% of the issued and outstanding shares of Primax. The deal, valued at roughly US$265 million, is the first completed private equity buyout of a Taiwan-listed firm which is not controlled by management shareholders.
“This buyout is a milestone for private equity in Taiwan,” said Stephen Tsuei, FAT Capital’s founder and chairman. “It’s also a milestone for Primax, which will now have the flexibility to pursue the merger and acquisition (M&A) activity that’s essential to its growth in the crowded contract electronics sector.”
The other partners in Hong Chuan Investment are private equity firms H&Q Asia-Pacific and Merrill Lynch. Yuanta Core Pacific Securities served as tender offer agent, and Taipei Fubon Commercial Bank was the lead mandated arranger for acquisition financing.
The tender office price, NT$18 per share, represents a 26.1% premium over Primax’s average share price for the last year.
Primax, based in Taipei, is a leading global supplier in consumer and business electronics. It’s a top player in the booming market for “multi-function peripherals” such as all-in-one printers/scanners/copiers. “This will give us the freedom to chart a bolder course for future growth,” said Primax chairman Mr. Raymond Liang. “We’re grateful for Stephen Tsuei’s leadership in putting together a strong investment team and successfully completing the deal, and for the key support of H&Q Asia Pacific.” After the buyout, Primax’ management are expected to remain in place, and no major staffing changes are expected.
About FAT Capital
FAT Capital is a private equity firm led by seasoned management with extensive business experience in Greater China. FAT Capital was founded in May 1997 by Mr. Stephen Tsuei, who is its current chairman. Mr. Tsuei is the vice chairman of Yageo Corporation, global leader in passive component sector, as well as the former Chairman and CEO of Far Eastern Air Transport Corporation (TWN Ticker: 5506) and Ezfly.com Corporation. Mr. Tsuei also serves on the board of directors of a number of listed companies. He has more than 17 years of experience in the investment management business.
