Actis, an emerging markets private equity specialist, has completed its investment in KS Distribution following the approval by the Singapore Courts of the inter conditional schemes of arrangement in respect of Aqua-Terra Supply and SSH.
The creation of KS Distribution, in a SGD320m deal funded by Actis and KS Energy, aims to create Asia’s largest oil and gas and marine products distribution business with more than 60,000 product lines across nine countries.
Actis has invested SGD142m in cash to acquire a 44.375 per cent stake.
KS Energy will hold the other 55 per cent, with the remaining 0.625 per cent held by Koh Soo Keong, chief executive 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, Aqua-Terra Supply and SSH.
Following the lodgement of court orders approving the inter-conditional schemes of arrangement, Aqua-Terra Supply and SSH are now wholly-owned subsidiaries of KS Distribution.
Paul Fletcher (pictured), senior partner at Actis, says: "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."
Kris Wiluan, chairman of KS Energy Services, says: "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."
