CSE Global undergoes strategic review after request from controlling shareholder Heliconia Capital Management
It is weighing options including potential transactions involving its shares, or all or part of its business and assets
[SINGAPORE] CSE Global is in the early stages of a strategic review and is assessing options including a potential transaction involving its shares, or, all or part of its business and assets.
The mainboard-listed group said in a Thursday (Mar 5) bourse filing that the strategic review includes “among others, an analysis of strategic options available to the company and an analysis of possible transactions involving the company’s shares and/or all or part of the company’s business and assets”.
The review follows a request CSE Global received from its controlling shareholder Heliconia Capital Management, a wholly owned investment firm of Temasek Holdings. Heliconia Capital focuses on helping Singaporean and South-east Asian small and medium-sized enterprises to grow into regional or global leaders. It is a wholly owned subsidiary of Temasek-backed 65 Equity Partners.
The review also comes on the back of the group’s receipt of a non-binding, preliminary indicative expression of interest from an unnamed party to discuss a potential strategic transaction in relation to the company.
In connection with the strategic review, CSE Global said that it will consider the expression of interest, which did not contain further details on the transaction scope or any indicative price. It added that there have been no discussions between the board and the other party on the expression of interest, to date.
CSE Global emphasised that “there is no certainty or assurance that any definitive agreement will be entered into, or any transaction will materialise from the strategic review”.
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The group is in the process of appointing a financial adviser to assist it in the review.
This comes as CSE Global’s net profit surged 87.1 per cent to S$21.2 million for the second half ended Dec 31, from S$11.3 million in the year-ago period.
The earnings growth was primarily due to a 22.1 per cent year-on-year rise in revenue to S$528 million, which came amid growth in the group’s electrification and communications business segments in the Americas, the group said on Feb 26.
CSE Global shares ended Thursday 1.6 per cent or S$0.02 lower at S$1.26, before the news.
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