[KUALA LUMPUR] Singapore-based private equity firm PrimeMovers Equity and London-based investment management company Lingotto Investment Management are buying a majority stake in Malaysia’s precision manufacturing company EngTek Group.

PrimeMovers and Lingotto made the announcement of the acquisition in a media statement on Thursday (May 18), with the transaction valuing EngTek at S$150 million.

EngTek was established in Penang nearly 50 years ago in 1974 and is one of Malaysia’s largest die cast and precision machining components manufacturers.

It was listed on Bursa Malaysia as Eng Teknologi Holdings in 1993 and then taken private in 2012 by its major shareholder TYK Capital. A report in The Edge last year noted that EngTek Group was looking to relist on Malaysia’s main bourse, but it was unclear as to which of its units would be the listed vehicle.

EngTek currently has 1,400 employees on its payroll and runs four factories – two in Penang, one in Johor and one in the Philippines.

Enzo II Holdings, a special purpose vehicle established and managed by PrimeMovers, will buy a 27 per cent stake in Engtek owned by Positive Carry for a cash consideration of RM120 million (S$35.6 million).

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The remainder of the majority stake will be acquired from EngTek’s chairman and chief executive Teh Yong Khoon, for an undisclosed amount.

While the total number of shares acquired was not disclosed, the statement said that Teh – who will continue in his roles post-transaction – and the existing senior management will retain a “meaningful minority stake” in the company after the transaction.

The deal is expected to conclude in the second quarter this year, subject to shareholder and regulatory approvals, and customary closing conditions.

PrimeMovers’ co-founder and chief executive Soo Jin Goh said the acquisition serves as a strong foundation for EngTek’s future expansion. “We are fully committed to help the company grow both organically and through bolt-on acquisitions,” he added.

Lingotto partner Ashish Kaushik said that Engtek is well-positioned to capitalise on South-east Asia’s growing importance in the global supply chain.