South African-based Invicta Holdings Ltd, revealed plans to acquire Kian Ann Engineering Ltd – a large distributor of heavy equipment parts and diesel engine spares listed on the Singapore Stock Exchange. The transaction is valued at R1.361 million and sees Standard Chartered set to act as financial expert and adviser. This move is also expected to boost Invicta’s revenue by 20%.
Invicta is listed on the Johannesburg Stock Exchange. It is one of the leading distributors of capital equipment, spare parts and engineering consumables in Southern Africa. The company’s current market capitalisation is approximately $654 million, with their revenue and profits increasing by 24 percent and 39 percent respectively, in the last financial year.
The proposed acquisition will provide Invicta with a valuable ‘hub’ for expanding its reach into Asia, leveraging on the operations in Africa to create a more sizeable parts group which, together with Malaysia and Indonesia, boosts diversity and further expansion in the region.
Speaking on the acquisition, Invicta’s Chief Executive Officer, Arnold Goldstone said: “Kian Ann Engineering has the capacity to distribute more than 1.3 million item lines covering over 270 brands from 220 suppliers, to a global customer base of dealers and end-users. This scale in distribution brings immense benefits to the Invicta Group. Expansion into Asia is a natural progression for our business, and Singapore provides an ideal entry point into several Asian Markets. Given Standard Chartered’s strong footprint in Asia, and their keen understanding of our business needs from an African perspective, the Bank is an ideal partner in facilitating this milestone acquisition for us”.
Speaking from the Bank’s regional office in Johannesburg, Phillip Reynolds – Standard Chartered’s Regional Head of Strategic Client Coverage for Africa, added, “Standard Chartered has the history, presence and on-the-ground expertise to facilitate trade and investment across the Africa-Asia trade and investment corridor. Singapore is commonly referred to as the gateway into Asia, boasting the world’s busiest port and ranked as one of the easiest places to do business – as such, it is a leading location for investments in the Asia Pacific Region. We are not only inspired by the increasing investor interest in Africa’s growth, but also the ability for African companies to maintain a competitive advantage and expand their reach internationally.”