StanChart PE takes 'significant' stake in Phoon Huat

Singapore

STANDARD Chartered Private Equity (SCPE) has invested in another Singapore food and beverage player, a year after it ploughed US$52 million (S$70 million) into Crystal Jade Group Holdings.

It is now taking a "significant stake" in branded food ingredients wholesaler and retailer Phoon Huat Pte Ltd, both companies said in a press release on Monday.

Following the deal, SCPE will provide strategic input into Phoon Huat's business planning and support the management in its development plans, it added.

Phoon Huat has been seeking a buyer since May last year.

Bloomberg reported that the Wong family, which controls Phoon Huat, was seeking S$250 million from the sale, which includes the company's real estate.

The Singapore company that was founded in 1947 runs 12 retail stores across Singapore.

Its website states that it is a leading wholesale supplier of bakery, beverage and confectionary ingredients, and that its specialty outlets are popular among households, cafes and restaurants.

It also provides baking ingredients under brands that include Redman to restaurants and hotels.

Phoon Huat managing director Wong Chen Liong welcomed SCPE's investment, saying that it bodes well for the firm's succession planning, which it had been putting in place for the last five years.

Said SCPE head of Asean Bert Kwan: "We are honoured to partner with Mr Wong and his family in one of Singapore's flagship, home-grown businesses. It is humbling to have the opportunity to support and extend such an important legacy. We look forward to bringing our management expertise and Standard Chartered Bank's network and capabilities to help take the business further."

This article was first published on July 5, 2016.
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