Date Published: 31 January 2020
CNPLaw LLP’s corporate advisory team ended 2019 and started 2020 strong with the completion of three private equity transactions within the food distribution, pharmaceutical and biotechnology industries. Leading the team was CNPLaw LLP’s Partner, Mr Ken Chia, assisted by Ms Hazel Ho (Senior Associate) and Mr Muhammad Parasuram (Associate). Managing Partner, Ms Lisa Theng was also involved in one of the transactions listed below – CNPLaw acted for a Singapore biotechnology company in its series B funding of S$15 million from US and Japanese venture capital firms.
The Three Private Equity Deals Completed
1. Acted for one of Japan’s leading fresh produce distributors in its investment of over S$30 million in a Singapore company
On 29 November 2019, CNPLaw LLP finalised a transaction for one of Japan’s leading fresh food distributors in its investment of over SG$30 million in equity and exchangeable debt in a Singapore fresh fruit wholesale trader.
This transaction marks a significant milestone for the client’s entry into the Singapore market. Upon the completion of the transaction, the client commended the CNPLaw team for their “quick response”.
2. Acted for a Hong Kong listed pharmaceutical company in its investment of S$2 million in a Singapore biotechnology company
On 5 December 2019, CNPLaw LLP assisted a Hong Kong listed pharmaceutical company to close its investment of S$2 million in a Singapore biotechnology company. The investment was made by the client’s investment arm via the purchase of convertible notes.
The investment contributes towards the advancement of diabetes cell therapy research in Singapore which is currently undertaken by the Singapore biotechnology company.
3. Acted for a Singapore biotechnology company in its series B funding of S$15 million from US and Japanese venture capital firms
On 2 January 2020, CNPLaw LLP assisted a Singapore biotechnology company involved in cancer research to raise S$15 million from US and Japanese venture capital firms. This financing round represents the client’s series B funding and strategically positions the client for future market entry into the US.
Commenting on the above transactions is Mr Ken Chia:
“We are pleased to service such clients and support their business goals with their global counterparts. The successful completion of these transactions showcases the breadth of our experience across difference industries in the private equity / venture capital realm.” – Mr Ken Chia, Partner at CNPLaw LLP
Private equity can be a viable source of financing for companies that do not wish to increase their leverage. While the introduction of private equity can help take a company to the next level of its development, the competing interests involved can derail the very growth that such transactions are intended to accelerate if they are not properly managed.
With years of experience overseeing private equity transactions (acting for both private equity investors and companies seeking to raise funds), our lawyers have an acute sense of the interests of both sides and are adept at managing investor relations. This ability to put themselves in the shoes of each party enables our lawyers to identify overlapping interests and pre-empt potential areas of conflict on issues such as the management of the company and the degree of investor protection.
Having handled transactions for numerous local and foreign companies across Asia, extending across a wide range of businesses and industries, we have accumulated significant experience advising on an extensive range of corporate finance transactions.