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Tag: sells

  • Singapore’s Rubber King Dynasty Sells Prime District Plot for $453M, Paving Way for Residential Development

    Singapore’s Rubber King Dynasty Sells Prime District Plot for $453M, Paving Way for Residential Development

    A piece of land in Singapore, associated with the family of the city’s late “rubber king,” Lee Kong Chian, has been sold for S$578 million (US$453 million). The 18,860-square-meter property, located at 8 Thomson Lane, was sold bearing a 105-year leasehold tenure. Currently, the site is earmarked for hotel use under the Urban Redevelopment Authority’s Master Plan 2025. However, the selling party, Chequers Properties, has allegedly secured preliminary approval to transform the site into a residential development.

    Details of the Purchase

    The buyer of the property is a joint venture spearheaded by Sustained Land, a residential developer based in Singapore and created by magnate Douglas Ong. The venture also includes the construction firm Kay Lim Realty. The plot is situated in Singapore’s prime District 11, in close proximity to the Singapore Polo Club, United Square’s retail outlets, the Novena medical cluster, and various educational institutions such as St Joseph’s Institution International and CHIJ Secondary (Toa Payoh). Additionally, it is near the Toa Payoh MRT station and the future Mount Pleasant MRT station.

    Previously, the site was the location of a historic country bungalow that later evolved into a hotel and resort before becoming the campus of EtonHouse International School, which shut its doors in 2023.

    Late ‘Rubber King’ and his Legacy

    The late Lee Kong Chian, famously known as the “rubber king,” founded Lee Rubber Company, a small rubber smokehouse that he developed into a multi-million dollar empire. His pursuits later expanded into the banking sector, where he led the merger of three banks, forming OCBC Bank in 1932, which now stands as Southeast Asia’s second-largest bank in terms of assets.

    Earlier this year, one of Lee’s grandsons reportedly purchased a bungalow on Barker Road for S$43.2 million. Another grandson bought two vertically stacked units at the Seven Palms Sentosa Cove condominium, totaling S$23.9 million, not long before that. The Lee family was listed as the 11th richest family in Singapore, with an estimated net worth of US$7.75 billion, by Forbes in September of last year.

    Questions & Answers

    What is the significance of the site sold?
    The site sold by the Lee family, located at 8 Thomson Lane, is of great historical significance as it housed a historic country bungalow that was later transformed into a hotel and resort before becoming an international school campus.

    Who are the buyers of the property?
    The land was purchased by a joint venture led by Singapore-based residential developer Sustained Land, owned by business tycoon Douglas Ong, and also includes construction firm Kay Lim Realty.

    What was Lee Kong Chian known for?
    Lee Kong Chian was known as the “rubber king” for founding the Lee Rubber Company, which turned into a multi-million dollar business. He later expanded his business into the banking sector and led the merger forming OCBC Bank.

  • Corby Spirits Sells Leading Rum Brand Lambs for $55.5 Million in Strategic Deal

    Corby Spirits Sells Leading Rum Brand Lambs for $55.5 Million in Strategic Deal

    Corby Spirit and Wine Limited has divested its British rum brand, Lamb’s, for the sum of US$39.2 million ($55.5 million) to Canadian and French firms, Phildan and Cofepp, respectively. Lamb’s holds a predominant position among rum brands in the UK and Canada, with its unique blend also available in Australia via select merchants and liquor retailers. The brand was acquired by Corby in 2006.

    Portfolio Simplification and Strategic Acquisition

    The business arrangement sees Phildan, a subsidiary of the Dandurand Group, taking over the North American rights to the brand, while Cofepp will hold the rights for the rest of the globe. The deal is part of a strategic decision by Corby to streamline its business portfolio and concentrate its efforts on growing priority categories, such as premium spirits and ready-to-drink beverages. According to Corby President and CEO, Florence Tresarrieu, the selling off of Lamb’s is a disciplined portfolio management decision that aligns with Corby’s long-term goals.

    The acquisition serves to bolster Phildan’s spirits portfolio, reflecting its sustained dedication to investing in brands with robust consumer recognition and growth potential. Hugues Gauthier, the president of Phildan, expressed his pride at the addition of one of Canada’s most recognized rum brands to their portfolio.

    Christophe Pichambert, the International Director at Cofepp’s subsidiary La Martiniquaise-Bardinet, stated that Lamb’s, being an established brand, would supplement their existing portfolio and align with their strategic objectives. He conveyed their excitement for the future opportunities and their commitment to support the continued success of the brand.

    Awaiting Deal Completion and Support Agreement

    While the transaction is still pending customary adjustments, Corby and its associated companies have pledged to provide post-closing production and distribution support to the new brand owners.

    Questions & Answers

    Who are the new owners of the Lamb’s brand?
    Corby Spirit and Wine Limited has sold the Lamb’s brand to the Canadian firm, Phildan, and the French firm, Cofepp.

    Why did Corby Spirit and Wine Limited decide to sell the Lamb’s brand?
    The decision to sell Lamb’s was made as part of a strategic plan to streamline Corby’s portfolio, enabling them to focus on growth categories including ready-to-drink beverages and premium spirits.

    What will be the future role of Corby Spirit and Wine Limited concerning the Lamb’s brand?
    Corby and its affiliates will provide post-closing production and distribution support to the new brand owners, Phildan, and Cofepp.

  • Everstone Capital Sells $57M Stake in Burger King’s India, Indonesia Franchisee, Ajanta Pharma Founders to Invest

    Everstone Capital Sells $57M Stake in Burger King’s India, Indonesia Franchisee, Ajanta Pharma Founders to Invest

    Private equity firm Everstone is set to sell its entire stake, amounting to 11.26 per cent, in Restaurant Brands Asia, a franchisee operating in India and Indonesia for fast-food giant Burger King. Those familiar with the matter have confirmed that the deal will be announced soon.

    Equity Stake Valuation

    Everstone Capital’s stake, held via its investment arm QSR Asia Pte Ltd, is presently valued at USD 57 million, based on Refinitiv data. Meanwhile, the market capitalisation of Restaurant Brands Asia stands at USD 437 million in Mumbai.

    New Strategic Investor

    As part of the agreement, a new strategic investor will be introduced to Restaurant Brands Asia. The identity of this investor remains confidential at this point.

    Despite repeated attempts, both Everstone and Restaurant Brands Asia have opted to not comment on the matter.

    Pharma Founders as Potential Investors

    The family office of the founding members of Ajanta Pharma, an Indian pharmaceutical company, is reportedly taking a keen interest in this deal. The family office, which also operates in the restaurant business, is projected to invest up to INR 8 billion (equivalent to USD 88 million) into the company.

    No comment could be obtained from the representatives of the family office either.

    Although it’s unclear what percentage of the company Ajanta would acquire, it’s speculated that they may become the majority stakeholder over time as other shareholders divest their stakes.

    In a recent communication with Indian stock exchanges, Restaurant Brands Asia announced upcoming board meeting plans to discuss and evaluate possible fundraising options, although no further information was provided.

    Questions & Answers

    What is the current stake of Everstone in Restaurant Brands Asia?
    Everstone presently holds an 11.26 per cent stake in Restaurant Brands Asia.

    Who is speculated to be the new strategic investor?
    The family office of the founders of Ajanta Pharma is speculated to be the new strategic investor.

    How much is the family office of Ajanta Pharma expected to invest?
    They are expected to invest up to INR 8 billion (USD 88 million) into the company.

  • Fonterra Sells Global Consumer Business To Lactalis In $3.48 Billion Deal

    Fonterra Sells Global Consumer Business To Lactalis In $3.48 Billion Deal

    Fonterra, a leading dairy company, has announced it is selling its global Consumer and associated businesses to French dairy enterprise, Lactalis. The transaction is valued at NZ$3.845 billion ($3.48 billion).

    Details of the Sale

    The sale incorporates Fonterra’s global consumer business (excluding Greater China) and a range of consumer brands such as Mainland, Anchor, Perfect Italiano, and Anmum. Also included are the integrated foodservice and ingredient operations in Oceania, Sri Lanka, the Middle East and Africa.

    Another element of the transaction that could potentially increase the total sale price by another NZ$375 million is the license for Bega Cheese-branded products. Currently held by Fonterra’s Australian business, the inclusion of this license in the sale depends on the resolution of a dispute with Bega Cheese Limited.

    Despite this sale, Fonterra plans to continue providing the divested businesses with milk and other products via long-term agreements. This ensures that dairy brands like Anchor and Mainland will continue to incorporate New Zealand farmers’ milk in their products.

    Justification for the Sale

    Fonterra chairman Peter McBride affirmed the board’s confidence in the transaction, stating that after an extremely competitive sale process involving multiple bidders, they believe the sale to Lactalis offers the highest value option for the cooperative. This decision was influenced not only by the strong valuation of the businesses being sold, but also by the opportunity for a full divestment of the assets and a quicker return of capital to the co-op’s owners, compared to an Initial Public Offering (IPO).

    Several bidders, including Japan’s Meiji and a consortium of the ASX-listed Bega Group and Dutch dairy cooperative FrieslandCampina, had previously shown interest in the businesses.

    Lactalis, an owner of popular brands such as Pauls, Vaalia, Oak and President, received clearance from the Australian Consumer and Competition Commission (ACCC) for the deal last month. Lactalis CEO Emmanuel Besnier expressed that this acquisition will strengthen the company’s strategy across Oceania, Southeast Asia, and the Middle East.

    Finalizing the Sale

    The sale is anticipated to be finalized in the first half of next year, subject to the satisfaction of all conditions. Fonterra will hold a special meeting in late October or early November to seek farmer shareholder approval for the deal.

    Fonterra’s earnings guidance for FY25 remains unchanged, despite the sale.

    Questions & Answers

    What businesses are included in the sale?
    The sale includes Fonterra’s global consumer business (excluding Greater China), several consumer brands and integrated foodservice and ingredient operations in Oceania, Sri Lanka, the Middle East and Africa.

    Will Fonterra continue to supply milk to the divested businesses?
    Yes, Fonterra plans to continue providing the divested businesses with milk and other products via long-term agreements.

    When is the sale expected to be finalized?
    The sale is expected to be completed in the first half of next year, subject to the satisfaction of all conditions.

  • Reliance Industries Expands Consumer Durables Reach With Electrolux’s Kelvinator Acquisition

    Reliance Industries Expands Consumer Durables Reach With Electrolux’s Kelvinator Acquisition

    Reliance Industries, a prominent Indian retailer, has recently acquired Swedish firm Electrolux’s Kelvinator, which is known for selling electronics such as refrigerators, washing machines, and air conditioners. This acquisition was carried out by the retail division of Reliance, demonstrating its ongoing expansion in the rapidly growing consumer durables market.

    Boosting Presence in Home Electronics and Appliances

    Reliance Retail is not only widening its presence in the consumer durables market but also extending its private-label portfolio of home electronics and appliances. This growth has been propelled by increased income levels, urbanisation, and sharpening competition in the market.

    The Background of Kelvinator

    Kelvinator, originating in the United States, had a significant international presence during the 1970s and 1980s, including a strong foothold in India. However, the brand experienced a downturn around the 1990s due to increased global competition and shifts in consumer preferences.

    Electrolux’s Profit from the Divestment

    Electrolux, in its latest quarterly report, disclosed that it had realised a profit of US$18.5 million from the sale of the Kelvinator brand.

    Questions & Answers

    What is the significance of Reliance Industries’ acquisition of Kelvinator?
    The acquisition signifies Reliance Industries’ commitment to expanding its presence in the burgeoning consumer durables market.

    What contributed to the expansion of Reliance Retail’s private-label portfolio?
    The expansion of Reliance Retail’s private-label portfolio has been driven by rising incomes, urbanisation, and increased competition in the market.

    What led to the decline of Kelvinator’s prominence in the market?
    Kelvinator’s market prominence declined around the 1990s due to heightened global competition and shifts in consumer preferences.