Possible acquisition of Forsyth Partners Limited by Crosby Capital Partners
Crosby Capital Partners confirmed that it has entered into a memorandum of understanding with Forsyth Partners Group to acquire certain assets from the Group. Crosby's move follows Forsyth's confirmation that it is seeking a strategic partner (see previous Hedgeweek article).
The agreement is non-binding and is subject to a number of conditions. Crosby is hopeful the remaining regulatory and administrative conditions will be met in the next few days and the negotiations taken to a successful conclusion. Details of any transaction, if successfully completed, will be made public in due course.
Crosby Capital Partners is an independent, deal-focused, Asia-oriented merchant banking and asset management group. Crosby has offices located in London, Hong Kong and Singapore, and is quoted on the London Stock Exchange's AIM. Businesses within the Crosby Group are regulated by the following authorities: The Financial Services Authority in the UK, The Securities and Futures Commission in Hong Kong, The Monetary Authority of Singapore and The Securities and Exchange Commission of Pakistan.
Crosby Capital Partners is incorporated in the Cayman Islands and therefore, shareholders should note that their rights may be different from those of a company that is incorporated in the UK.
Crosby's strategy is to focus on corporate situations that are opaque or under-researched and to identify under-valued assets that are often hidden within complex or inefficient management, ownership and capital structures. This involves Crosby working with funding and operating partners to realise and share in the inherent under-valuation identified. To align Crosby's interests with those of the partners and to maximise the return to shareholders, Crosby's return from the deal is usually based on some form of direct equity participation in the restructured assets rather than a fee.
Crosby says its business model enables the target firm to compete with major investment banks and private equity firms to structure and execute large, complex transactions, 'whilst retaining the responsiveness, flexibility, independence and agility that often characterise a smaller firm'. Crosby has built a largely Asia-focused asset management business that provides it with a more consistent income stream, which complements the less predictable, yet significantly more substantial, income generated by the core merchant banking activities.
The original Crosby business was established in Hong Kong in 1984 as a traditional stock broking firm. The current senior management team acquired the investment banking and asset management businesses along with the Crosby brand name in 2002. In May 2004 Crosby (AIM: CSB) became quoted on the London Stock Exchange's AIM Market.
As of 30 June 2007, Crosby Capital Partners Inc was 81.04 per cent owned by Techpacific Capital Limited, and 31 per cent of the issued share capital of Techpacific was owned by directors and employees of Crosby.
The exercise of Crosby share options and a bond issued by Techpacific, exchangeable for Crosby shares which they hold, have the potential to dilute Techpacific's ownership to just under 72 per cent..
Techpacific Capital Limited is an independent merchant banking and asset management group listed on the Hong Kong Stock Exchange's GEM board (HK GEM: 8088), with offices in Hong Kong, Beijing, Shanghai, Singapore, the United Kingdom and representation in other parts of Asia.
The Group is engaged in the businesses of merchant banking, asset management, venture capital fund management and direct investment. Crosby carries out the Group's merchant banking and asset management activities.
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