South Africa’s Invicta to buy Singapore’s Kian Ann Engineering for $155 mn

South African capital equipment distributor Invicta Holdings Ltd said yesterday that it plans to acquire Singapore's Kian Ann Engineering Ltd for approximately 1.36 billion rand ($155 million) in a cash and share deal, expanding the company's footprint into Asia.

Invicta said in a statement that the company will offer S$0.44 ($0.36) a share for the Singapore firm. The offer price represents a 96-per cent premium over Kian Ann's average stock price over the past one year, and is 59-per cent higher than its average share price during the past one month.

Singapore-listed Kian Ann Engineering is a prominent distributor of heavy machinery parts and diesel engine components in the region. The company supports leading global brands such as Caterpillar, Komatsu, Cummins, Hitachi, Kobelco, Sumitomo, Mercedes Benz, Volvo, Scania and others.

Its distribution network is spread over 50 countries covering southeast and central Asian nations, China, Australia, New Zealand, Europe, Russia, and the Middle East, etc.

Some of Kian Ann's senior managers including managing director Law Peng Kwee have agreed to swap their holdings in the firm for shares in Invicta, the statement said.

The acquisition is likely to boost Invicta's revenue by 20 per cent, according to the statement.