BAPCOR ANNOUNCES EXPANSION IN ASIA
An agreement to acquire equity in Tye Soon Limited has been announced
BAPCOR Ltd says it is pleased to announce it has signed agreements to acquire 25 percent of the issued equity of Tye Soon Limited, a company listed on the Singapore Securities Exchange.
Tye Soon was established in 1933 and is said to be the most prominent independent automotive parts distributor in South East and North East Asia, distributing a wide range of genuine parts and aftermarket parts.
The group’s main markets are served by its operations in Singapore, Malaysia, Thailand, Hong Kong, South Korea and Australia.
Partnering with its principal suppliers from Europe, Japan and Korea, the group has one of the largest portfolios of top tier global brands of automotive parts.
Tye Soon’s annual revenue is c. SGD 200 million (approx. 194.45 million AUD) across:
• Malaysia $43m (approx. 41.81m AUD), 15 locations
• South Korea $43m (approx. 41.81m AUD), 20 locations
• Australia $42m (approx. 40.83m AUD), 20 locations
• Singapore $19m (approx. 18.47m AUD), two locations
• Thailand $13m (approx. 12.64m AUD), one location
• Other countries $40m (approx. 38.89m AUD)
“The complementary expertise of Tye Soon and BAPCOR brings a range of opportunities for both businesses to collaborate and grow their markets,” BAPCOR Limited Chief Executive Officer and Managing Director, Darryl Abotomey, said.
“Tye Soon has particular strengths in genuine parts and aftermarket parts distribution as well as an excellent store network in fast growing South East and North East Asian countries.
“BAPCOR will work with Tye Soon to maximise the opportunities to grow their businesses in Asia and Australasia.”
Completion is expected to take place in April 2021. BAPCOR will invest approximately SGD12.5 million (approx. 12.5m AUD) for the 25 percent stake in Tye Soon and will nominate directors for the Tye Soon Board.
Note: In BAPCOR’s accounts the 25 percent investment in Tye Soon will be recognised as an investment in an associate. Due to the extremely low volume of Tye Soon shares traded on the SGX the share price does not reflect the underlying value of the business.
BAPCOR’s investment reflects the net tangible assets of Tye Soon. The recoverable amount of the investment will be assessed for any impairment at the end of each reporting period as required by the methodologies prescribed in the specific accounting standards.
For more from BAPCOR, please visit www.bapcor.com.au