Singapore's Unisteel accepts $575 mln KKR bid
HONG KONG, July 7 - Singapore disc drive component maker Unisteel on Saturday said it has agreed to be bought by Kohlberg Kravis Roberts & Co. KKR.UL for $575 million.
Unisteel said KKR has offered to pay S$1.95, or S$785 million for the company, and that the two parties have agreed to a deal. The deal marks KKR's second purchase of a Singapore disc drive maker in the last year.
"We are delighted to receive KKR's proposal to acquire the company," said Bernard Toh, Unisteel's executive chairman.
KKR beat out Bain Capital and Carlyle Group in what sources involved with the deal said was a competitive auction dominated by U.S. private equity firms.
Trading in Unisteel's stock was halted on Tuesday at S$1.76 per share after rising more than 10 percent in the previous two trading sessions.
Reuters reported on May 2 that the company hired Australia bank Macquarie to put Unisteel up for sale. Unisteel said on Thursday that it was in advanced talks with a prospective buyer but did not name the company.
Morgan Stanley advised KKR and will provide loans to the firm for the deal.
Unisteel said its management team will continue in their current positions.
The deal offers a price to earnings multiple of 17.7 times earnings per share for the 12 months ended on March 31 2008, according to the company. The agreement needs approval by a majority of Unisteel shareholders.
