CAPITAL.MY

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Recapitalization of a High-Technology Polymer Pipe Producer.

Recapitalization of a High-Technology Polymer Pipe Producer.

Situation:

Founded in 2004 and acquired the Malaysian Industrial Development Authority’s (MIDA) pioneer status recognition in early 2005 with 70% tax exemption for 5+5 years, the company is a leading producer of the most technically advanced polymer pipe (High Impact Resistant, Anti-Bacterial). The Founder was seeking liquidity for his investment and a financial partner to work with the management team to continue growing the business.

Challenge:

CAPITAL’s mandate was to recapitalize the business with financial partners to provide liquidity for the company’s founder, while preserving their ability to continue to participate as equity participants in the recapitalized company.

Solution:

Through the network CAPITAL had cultivated in the private equity / financial community we arranged several meetings with interested investors and bankers. The assignment included developing a detailed three year business plan and financial forecast.

Result:

CAPITAL structured a RM20 million recapitalization of The Company. The transaction structure enabled the founder to reinvest a portion of his proceeds in order to maintain over 51% ownership of the new company. Further, participation from the management team resulted in approximately 10% of the recapitalized company being owned by members of the existing management team.

CAPITAL managed the transaction from start to finish, successfully negotiating significant liquidity for the Company’s shareholders, while providing the company with a financial partner to fuel future growth.

Capital Team