Affinity buys two South-east Asian companies for US$1.65 billion: sources

AFFINITY Equity Partners, a Hong Kong-based buyout firm, has concluded two acquisitions in South-east Asia worth a combined US$1.65 billion, people with knowledge of the deals said.

It bought Jakarta-based gummy candy company Yupi for US$1.2 billion, said two of the people. Yupi, founded in 1996, is one of the largest gummy candy makers in Asia and its products are sold in more than 50 countries, according to its websites.

Affinity acquired the company from Yupi’s founders, one of the people added.

The firm also purchased Golden Fresh, one of Malaysia’s biggest seafood processors, for US$450 million, said one of the people and a third person with knowledge of the matter. Golden Fresh was founded in 1989 and is based in Penang.

Reuters was not immediately able to learn the names of Golden Fresh’s sellers.

The acquisitions will help Affinity tap into South-east Asia’s strong economic growth prospects, according to one of the sources.

The sources declined to be identified as the discussions were private. Affinity, Yupi and Golden Fresh did not respond to requests for comment.

The transactions are a relatively bright spot for dealmaking in South-east Asia. Deal value in the region halved in the first nine months of the year compared to the same period a year earlier with only four deals exceeding the US$1 billion mark, according to a report by the Boston Consulting Group.

But M&A activity could improve on the back of the region’s strong economic prospects and corporate efforts to become more digital, the report said.

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Founded by former UBS banker Tang Kok-Yew in 2002, Affinity has US$14 billion of assets under management across the Asia-Pacific region and 58 investments in 11 countries, according to its website.

In September, an Affinity-led consortium sold Island Hospital in Malaysia to regional healthcare group IHH Healthcare at an enterprise value of RM4.2 billion (S$1.3 billion).

In April, Affinity sold its remaining 17.1 per cent stake in Indonesian herbal medicine company Industri Jamu dan Farmasi Sido Muncul to controlling shareholder the Hidayat family for US$233 million. REUTERS