DC Advisory advised Osaki Electric Co. Ltd. on the acquisition and privatisation of SMB United Limited

DC Advisory’s (DC) Singapore team acted as the exclusive financial advisors to Osaki on its acquisition and privatization of SMB United Limited (SMB) at a value of SGD 205 Mn.

This acquisition allowed Osaki to accelerate overseas expansion beyond its domestic market of Japan to Australia, New Zealand, Asia, and Europe, to increase its product and service offerings, and to enhance its research and development capabilities.

DC was able to secure the deal by proactively identifying and marketing the target company, persisting in discussion despite a hostile bid by a competitor, and devising an effective counter-bid strategy for our client to successfully win a competitive bid.

Osaki Electric Co., Ltd. (Osaki), a manufacturer and wholesaler of electric meters listed on Tokyo Stock Exchange, successfully won a competitive takeover offer to acquire SMB United Limited (SMB), a manufacturer of electric meters and switchgears listed on the Singapore Stock Exchange.

DC pitched SMB to a list of Japanese investors, which included companies engaging in the same or complementary businesses.

On the back of Osaki’s strong initial response, DC approached the controlling shareholders of SMB and arranged for Osaki to conduct site visits and preliminary discussions with SMB’s management/controlling shareholders.

When transaction discussions were interrupted and suspended by a hostile takeover bid from Boer Power Holdings Limited 'Boer', DC devised a counter bid strategy.

Working around the constraints of the Singapore takeover regulations and against time pressure from the hostile bid, DC advised Osaki on their due diligence process, building a business case, negotiating a deal with the controlling shareholders of SMB, and lining up bridge financing for the acquisition.