Johannesburg - Engineering firm Invicta Holdings said on
Monday it planned to buy Singapore’s Kian Ann Engineering for about $160m in a
cash and share deal, giving it a platform in Asia.
Invicta said in a statement it will offer to buy the
distributor of heavy equipment parts and diesel engine spares for S$0.44 a
share.
Some of the Singapore firm’s management will also swap their
stakes in Kian Ann for shares in Invicta, the South African company said.
The total value is around R1.36bn, Invicta said, adding the deal is likely to boost revenue by 20%.
It said it could use Kian Ann as a platform for further
expansion in Asia.
Acquisitions of Asian firms by African ones remain
relatively rare. Most deals between the regions usually involve an Asian firm buying
a presence in Africa.
Standard Chartered said it was the financial adviser on the deal.
Shares of Invicta were up 0.4% at R78.10 in Johannesburg at 08:22 GMT.
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