Ekuinas on the prowl for acquisitions

MEANINGFUL PORTFOLIO: (From left) Abdul Rahman, Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop and Ekuinas chairman Tan Sri Datuk Seri Arshad Raja Tun Uda at the performance briefing yesterday — Pic: ARIF KARTONO

KUALA LUMPUR: After a slew of purchases over the past one year and already spending about half its of its RM600 million in targeted investments for this year, Ekuiti Nasional Bhd (Ekuinas) is still hungry for more businesses to come into its fold.

Chief executive officer Abdul Rahman Ahmad yesterday said: “We have so far undertaken, through direct and outsourced means, three investments in the education and fast-moving goods sector amounting to RM300 million.”

With the Burger King and San Francisco Coffee franchises in hand, the government-linked private equity fund had recently acquired the Revenue Valley Group — which owns and operates Manhattan Fish Market, Tony Roma’s and Popeye’s franchises in Malaysia and Singapore.

But, its supposed purchase of the A&W franchise failed to materialise after KUB Malaysia Bhd changed its management recently.

Ekuinas has also bought the Cosmopoint Group, which owns and operates KL Metropolitan University College and Cosmopoint International College of Technology.

Further, it has obtained Asia Pacific Institute of Information Technology, Asia Pacific University College of Technology & Innovation and Sapura Smart School.

While Abdul Rahman declined to disclose what new investments Ekuinas is now eyeing, Tanjung Offshore Bhd had recently announced the sale of its marine business to major shareholder E-Cap (Internal) One Sdn Bhd, wholly-owned by Ekuinas Capital Sdn Bhd for RM220 million.

The six sectors favoured by Ekuinas are in the fast-moving consumer goods, oil and gas, retail, education, food and beverage including services and healthcare.

Abdul Rahman also said Ekuinas would look into non-core assets that are to be divested by government- linked companies. He explained that Ekuinas will have to abide by its guidelines before taking on deals — no less than RM30 million and RM15 million for direct and outsourced programmes respectively.

On its performance, he said: “Ekuinas has recorded a total portfolio gains of RM165.7 million from nine committed investment amounting to RM903.4 million since its inception in 2009.”

This facilitated a total capital deployment of more than RM1 billion, he added that it has positively benefited the country’s economy through the creation of more than 3,400 job opportunities.

“We have also successfully increased the total of bumiputra equity value by RM806.6 million or 1.4 times from the RM565.9 million capital invested.”