Bulls-eye by Goldis, black eye for the ecosystem?: Page 2 of 2
By Karamjit Singh July 16, 2013
Goldis to look at green tech, food & healthcare
Digital News Asia had a Q&A with Goldis Bhd chief investment officer Colin Ng (pic). Below are excerpts.
DNA: How much more money did you pump into Macrokiosk after coming on board?
Ng: RM3.5 million of a total investment. As per the agreement dated July 8, 2013, there is an inter-company advance of approximately RM10.4 million.
DNA: What role did you play in the early years and how has that changed as the company gained traction and the brothers grew into their leadership roles?
Ng: Goldis' principle investment strategy has always been to continuously identify and invest in sectors with high growth potential, and to build businesses within those sectors. We groom and support small companies in terms of transaction support and portfolio oversight.
The private equity arm is active in countries mainly in Malaysia and China. We create new value in the economy while retaining roots within three key areas -- innovation, quality and integrity.
At Goldis we continue to remain faithful to our vision of growing new businesses via the private equity model. Our belief remains in investing in passionate and driven entrepreneurs who grow our companies.
One of the best examples was with Hoepharma, a pharmaceutical company, where we invested at approximately RM6.3 million (US$2 million) and was disposed of at RM370 million (US$116.7 million) to Japan’s Taisho Pharmaceutical Co.
For this year, we are actively looking for new investments to grow future business and to mark important milestones for this company. The new investments will be focusing more on green tech, food and healthcare, as projects such as these hold tremendous potential for tackling energy deficits, boosting economic growth and improving people’s lives. This new projects will also include private investment.
DNA: In 2011 you rejected a buyout offer for Macrokiosk. Why was that?
Ng: In our announcement dated March 2, 2012, [on the] MBO to the management, we had announced that the conditions precedent had not been fulfilled by the extended period i.e. Feb 29, 2012 and in view thereof, Goldis Berhad had on March 2, 2012 rescinded and terminated the contract formed in the Letter of Offer dated Dec 12, 2011 and subsequent letter dated Dec 14, 2011 'whereupon the contract shall be null and void and of no further force and effect and neither party shall have any claims against the other.'
DNA: What changed in the business since that 2011 offer that saw a revised offer with a 50% premium?
Ng: The previous deal, taking into consideration the call option granted by Trigoh Sdn Bhd, while the 2013 offered was a total buyout deal. Both are based on five times of EBITDA/Nett Cash Flow. (EBITDA has increased).