Actis has announced the completion of its investment in KS Distribution Pte Ltd (“KS Distribution”) following the approval of the inter conditional schemes of arrangement in respect of Aqua-Terra Supply Co Ltd (“ATS”) and SSH Corporation Ltd (“SSH”).
The creation of KS Distribution, in an US$230m deal funded by Actis and KS Energy, aims to create Asia’s largest oil & gas and marine products distribution business with more than 60,000 product lines across nine countries. Actis has invested US$104m to acquire a 44.375% stake. KS Energy will hold the other 55%, with the remaining 0.625% held by Mr. Koh Soo Keong, CEO of KS Distribution.
The final closing of the deal concludes a four-month approval process that began in December 2009 with the public announcement by Actis and KS Energy of the proposed consolidation. The proposal received strong shareholder support in March 2010 at the shareholder meetings of KS Energy, ATS and SSH. Following the lodgement of court orders approving the inter-conditional schemes of arrangement, ATS and SSH are now wholly-owned subsidiaries of KS Distribution.
Commenting on the announcement, Paul Fletcher, Senior Partner at Actis, said, “Kris Wiluan is one of Asia’s most talented entrepreneurs; we are inspired by his vision and share his ambition to create a unique pan-Asian oil and gas business. Actis enables businesses to grow and the team will move quickly to consolidate operations across the companies, achieving synergies and increasing profitability.”
KS Energy has held stakes in ATS and SSH since 2006, and the success of this transaction completes their integration. Winner of the Ernst & Young Indonesian Entrepreneur of the Year Award in 2009, Kris Wiluan, Chairman of Singapore’s mainboard-listed KS Energy Services Limited, said, “We are very pleased to bring in Actis, a strong partner whose proven business building skills and in-depth knowledge of emerging markets and the oil & gas industry will contribute significantly to the growth of KS Distribution. Actis’s investment facilitates my long-held vision of building the region’s leading Integrated Energy Supply and Services Hub. With its strong track record and operational expertise, Actis will be an invaluable long-term partner on our journey to increase the scale and reach of KS Distribution, and provide greater value-added services to our customers.”
Partner Gary Addison led the deal team for Actis. He said, “This was an extremely complicated transaction and one of the first deals of its kind in Asia. It is a significant transaction for Actis and strengthens our position as a leading private equity investor in South East Asia. The leadership of Kris Wiluan, coupled with our operational insight and knowledge of emerging oil and gas markets like Africa and Brazil, will provide the opportunity to create one of the region’s most attractive oil and gas services companies.”